Three Financial Myths Surrounding Divorce
While you may be sharing the news of your impending divorce with close friends and family for support, you may also receive your fair share of not-so-helpful advice and completely false "truths." Below are three common financial myths surrounding divorce and the truths behind them.
Myth: The Lesser Earning Spouse Always Receives Alimony
Alimony, also referred to as spousal support, is a payment made to an ex-spouse. Each state has their own rules regarding alimony, so if you think you qualify to receive it (or may be ordered to pay), it's a good idea to read up on the laws of your state.
In general, alimony payments are paid to the ex-spouse who earns significantly less, or to the spouse who gave up their career to raise the children of both spouses. Alimony is never guaranteed, however, and the spouse who may qualify to receive it will only do so for a predetermined amount of time.
Myth: Assets Will Be Distributed According to Earning Power
If you earn less than your spouse, even if it's significantly so, you still have equal rights to the assets obtained during your marriage. Property and other assets that were acquired by one person prior to marriage will be distributed (or not) according to state law, but marital property is another issue.
Assets are much more than tangible property – they also includes bank accounts and retirement plans. Division of such assets can be tricky to determine, so working with a divorce attorney is a solid step towards fair distribution.
Myth: The Financial Discovery Process Will Bring All Hidden Monies to Light
Some marriages end more bitterly than others. If your spouse has been hiding money or other assets, there may be nothing that can bring them to light during the divorce process.
Hiding assets is as simple as transferring ownership to a friend or "accidentally" overpaying the IRS. Unfortunately for the other spouse, these methods, while fraudulent, can go easily undetected and cause undue hardship. While your lawyer will work with you to get you a fair share of the marital property, they cannot usually uncover what is purposely hidden.
Divorce is hard, even without having to weed through the myths and find the truths behind them. If you're getting divorced and have questions regarding finances or other issues, consult with a divorce attorney, such as those at Kalamarides & Lambert. They can help you through the process and give you advice when you need it most.
