Divorce is already taxing mentally; however, it can be even more financially taxing. In homes with one child, the cost to raise him or her to the age of 17 years old will exceed $300,000 according to a recent study. This does not include any college costs. According to the U.S. Department of Agriculture, the average yearly expense per child is slightly over $14,000 and the average middle income with two parents is no more than just over $102, 000. These numbers are slightly lower or higher depending on the income bracket the family falls into. This is the point of contention in many child support hearings. These numbers are astronomical for a married couple in at least the middle income range and can be devastating for a single parent after divorce. Out of the more than a quarter-of- a-million-dollar estimate to raise one child to college age, the largest expense is housing. This can account for at least 30 percent of the cost. The other two big ones are of course childcare (accounts for around 18 percent) and nourishment (about 16 percent). For single parents without support, these figures can be higher.
When many people decide to get married they don't want to ruin the romance of the occasion by talking about money. Others think money issues only happen to "other people," but they are wrong. Money problems in a marriage are essentially communication problems with dollar signs. No matter how much in love a couple might be, no one is immune to the effect that money and debt can have on marriage. That lack of communication regarding money and debt can both lead to divorce and bleed into matters of property division and financial support should a union end in a split. According to a 2009 study conducted by researchers at Utah State University, those who have financial disagreements at least weekly are more likely to divorce. With more people marrying later in life, there is a greater chance each individual will carry their own debt into a marriage. The best way for both parties to figure out how to deal with the joining of their finances is to take the time to talk about the issue seriously before they say "I do." However, a study conducted in 2010 by American Express revealed that such a pre-marital talk about finances was the exception, rather than the rule.
A Texas woman wants to return $1.4 million in goods she considers "tainted" because her husband bought the gifts for her from her personal shopper, who works at Neiman Marcus. The husband was allegedly having an affair with the personal shopper, and the woman and her husband have filed for divorce. The woman has filed suit against Neiman Marcus, claiming that the store engaged in fraud and deceptive trade practices. Her lawsuit alleges that the store knew that the husband and the personal shopper were having an affair and that the shopping going on was benefiting the personal shopper as the wife was being lied to.
The traditions of relationships, love and marriage change over time. Couples wait longer to get married these days, meaning that they might already be living together and be bringing money (or debt) into the marriage. They are more established in their lives and, therefore, likely have more business and money matters to clarify before getting married in order to prepare for a potential divorce.
When one makes the decision to get a divorce, that decision is the first step of many that will actually make the split official. There are decision regarding child custody, property division, alimony and more that can make moving on with one's life feel like the most difficult thing they've ever done.
In a previous post, we began a discussion about potential fraud during property division amid divorce. Forbes published a list of warning signs for divorcing parties to look for that could be potential signifiers that their ex is hiding assets from them.
When a romantic relationship begins, very few people believe that things could ever get ugly or to the point of divorce. But divorce statistics prove that most people are wrong. Marriages start with the best of intentions, filled with love, but then they sometimes end in the most acrimonious way.
Today's baby boomers are far more likely to be single than people in their age group were in the past. In 2010, according to an analysis of recent census data conducted by Bowling Green State University, about a third of Americans aged 46 to 64 were single due to divorce, separation or never being married. In 1970, only 13 percent were. That's a huge difference. Boomers have always been known for doing things differently than previous generations. Their willingness to be single in middle age, even after a long-term marriage, is no exception. Some reasons for this change include the growing financial independence of women, which enables them to live on their own, less social pressure to be married, a declining stigma against getting divorced later in life and increased life expectancies, which make people more reluctant to stay in unhappy marriages.
Deciding to get a divorce can be a scary, emotional decision. It can be especially daunting for the person in the marriage who might not make as much money as their spouse. Will they be able to support themselves and their kids if they leave the marriage?
Everyone knows divorce can be sticky emotionally, but the economics of divorce can get tricky too, especially when checks are still being written to an ex-spouse after a divorce is final. Depending on how the money is allocated, there are different tax implications for both the recipient and the payer. As part of a divorce settlement, a family law court may ask one of the spouses to pay spousal support (aka alimony), child support, or both.