There are a range of sudden financial changes that accompany divorce. Often, people in Tennessee find it more difficult to move past the financial aspects of the end of a marriage than the practical or even the emotional aspects. In fact, divorce is often the occasion for financial surprises that can change a person's perception of the financial health of the marriage or his or her plans for the future. One study interviewed 1,785 divorcing or divorced women and found that nearly half experienced major financial surprises.
Whether or not to keep the home in a divorce may be a difficult decision for some people in Tennessee to make, especially since there are advantages and disadvantages to either choice. A study by the Center for Retirement Research found that on average, divorced women who remained single tended to have similar assets for retirement as never-married women despite the fact that people who divorce have a 5 percent higher chance of spending all their assets during retirement on average. The difference for women seems to be whether they get the home as an asset in a divorce.
Tennessee parents who are getting a divorce should be aware of how the process can impact them financially. If they have financial plans in place to send their children to college, they should give particular consideration to how the divorce may affect those plans. It will take careful strategizing to make sure that they are able to contribute financially to their children's college education after a divorce.
When couples in Tennessee get engaged, they do so with the intention of being married for life. Unfortunately, things don't always work out, and a marriage may end in divorce. This is always a difficult time, but the process of unraveling marital finances can be even more complex when one or both spouses come from a wealthy family.
Parents in Tennessee who are getting a divorce can help ease their children's transition by talking to them about the divorce and ensuring that they do not believe they are at fault. They can also watch their children for signs of depression and anxiety. They might want to ask their children's friends and teachers about their adjustment. Parents should also keep in mind that these emotions may manifest as acting out in some children who do not express them verbally.
If 401(k) assets are divided between the two parties of a divorce in the wrong way, there could be very expensive penalties as well as a large tax bill. One ex-spouse may also receive more of the funds than the holder of the account intended. Divorcing couples in Tennessee can avoid ending up with these results by taking time to learn about the rules that govern their particular type of retirement account.