Individuals in San Jose who are approaching or going through divorce may fear the financial downsides. The divorce process itself can be expensive, and the loss of a spouse’s income can make things more difficult financially. There are, however, potential financial silver linings associated with divorce.
For example, during divorce is one of a few times that a person is allowed to withdraw retirement funds without paying a penalty for early withdrawal. Once a qualified domestic relations order has been entered as part of the divorce process, money can be withdrawn without the usual 10 percent penalty. For people who get divorced at or over the age of 62, there may be Social Security benefits.
Divorce allows for easier budgeting and greater individual control over funds in many cases. There’s reason to believe it could lead to greater investment returns for women. An analysis by Fidelity Investments in 2017 indicated that women may earn better gains than men because they are less likely to make risky investments or focus the whole of their portfolios on equities.
Divorce may have financial benefits for children if they make use of financial aid to pay for college. The Free Application for Federal Student Aid asks for financial information from only the custodial parent, so the child may gain advantages for grants, especially in a high asset divorce. Note that alimony and child support paid by the non-custodial parent must be included on the application for aid.
An attorney with experience in divorce law may be able to answer questions about the financial silver linings of divorce. An attorney may also be able to identify assets during property settlement negotiations or make claims on behalf of the client in court.