When people in North Carolina decide to divorce, it can be complex to negotiate the financial issues that arise with property division. For women in particular, divorce has been shown in a number of studies to have a wide-ranging impact on their financial future. While men's income appears to rise an average of one-third after a divorce, women do not enjoy the same benefits. In many cases, women's income can decline as much as 20 percent after a divorce and often never rises to its prior level.
After divorce: Keeping the home or not
Splitting assets, debts and other divorce financial issues
People in North Carolina who are getting a divorce need to take a number of financial issues into account. In some cases, property division may be more complex than it appears on the surface. For example, some assets may appear as though they have equal value, but one account may be taxed on withdrawal, lowering its actual value, while the other is not.
College debts could lead to divorce
As many North Carolina residents know, there are various reasons why people get divorced. Financial issues are commonly cited as causes behind separations. However, some may be surprised to learn that debt from college loans could significantly contribute to the end of a relationship.
Women and finances in divorce
The cost of health insurance, a forced return to the workforce and the temporary nature of alimony may be among the financial surprises in store for some women who get a divorce in North Carolina. In a survey conducted by the online marketplace Worthy, 46 percent of divorced women reported a financial surprise during the divorce process.
Financial stress can lead to divorce
Financial concerns are often cited as the most common cause of divorce in North Carolina. Unfortunately, the separation itself can carry its own financial difficulties as well. There are a few common reasons for marital clashes over money. By working to resolve issues over finances, a couple could keep their marriage together.
Divorce decree may trump beneficiary designation
A divorce decree is a legally binding document. However, because some of the assets that get divided in a divorce could pass to a beneficiary based on a form filed with the company that holds the asset, it's important to make changes to avoid conflicts later. For example, when someone purchases a life insurance policy in North Carolina, they tell the company whom they would like to receive the money when they die. If the owner of the policy gets divorced and doesn't change the beneficiary, an ex-spouse could receive the money.
What to change in an estate plan during a divorce
In addition to the many tasks a person needs to do as part of the divorce process in North Carolina, it may be necessary to update the estate plan. For example, a person may want to choose someone other than the spouse to make healthcare decisions in case of becoming incapacitated. Unless the divorce is amicable, the person may also want to choose someone else for the financial power of attorney because this gives the spouse control over all the person's assets.
More women paying spousal support
When many people in North Carolina think of alimony or spousal support, they may expect the traditional stereotype of payments made by an ex-husband and received by an ex-wife. This was especially true when many more women and mothers stayed at home full-time. However, a survey by the American Academy of Matrimonial Lawyers found that 45 percent of attorneys working on family law cases had recently seen an upswing in the number of women who were ordered to pay alimony during their divorce.
Don't let divorce ruin college savings plan for children
As soon as a child is born, some North Carolina parents start worrying about college costs. Those worries can intensify if a couple decides to divorce.
Guide to establishing paternity
There are major benefits for North Carolina children identifying their birth father. In many cases, the father will make the establishment of paternity easy by voluntarily establishing it. However, in cases where voluntarily establishing paternity is not possible, a birth mother can go through the courts to settle the issue.
