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Is there a silver lining for finances in a divorce?

On Behalf of | Jan 21, 2022 | Divorce

To say that there is a silver lining in a particular situation typically means that there is an element of hope or a benefit associated with an otherwise negative situation. It basically means that, sometimes, good things come out of bad situations. Regarding divorce, there may be certain financial advantages or benefits; hence, a “silver lining” that a concerned Pennsylvania spouse might not expect. 

Independent control of finances is possible after divorce 

Many spouses say that financial issues were a key factor in their decision to divorce. No one wants to always be fighting with a spouse about money. Because there are two people involved in a marriage, the amount of independent control a spouse can have over finances is limited. However, after finalizing a divorce, a person becomes far more able to control his or her own financial portfolio without having to seek another person’s agreement over every minor issue.  

Penalty-free access to retirement funds 

Another possible financial benefit to divorce is that, in many cases, a person may gain early access to retirement benefits. In a non-divorce situation, such access would normally incur a penalty fee. In Pennsylvania, for example, it is possible that the court will distribute assets to a non-employee spouse that are equal in value to retirement benefits to which he or she is entitled. If a Qualified Domestic Relations Order is signed, each spouse may be allowed early withdrawal of retirement funds without penalty.  

More college money for children of divorce 

When a student applies for college financial aid, information regarding the custodial parent’s finances is required. A custodial parent’s household income may be substantially lessened by divorce, which means the student in question would qualify for a greater amount of financial aid than he or she might have if both parents were living under the same roof. This financial benefit of divorce often comes as a welcomed surprise to parents who are struggling to help a son or daughter pay college tuition. If questions arise regarding college aid or other financial issues in a divorce, it is best to meet with an experienced family law attorney before heading to court because the answers to one’s questions may have a significant impact on the settlement.