The decision to divorce can cause change for everyone in a family. The spouses have to make changes to their daily lives and finances. They may have to rework their schedules if they share children with one another.
It can take quite some time for divorcing spouses to negotiate settlements and navigate the court process necessary to legally end a marriage. Throughout that process, people often have questions about what the future holds. For example, they may worry about the possibility of divorce dragging down their standard of living and putting them in a difficult financial situation.
Does divorce typically impact the standard of living that spouses enjoy?
The same income must cover two sets of costs
The uncomfortable reality for anyone facing divorce is that a temporary reduction in their standard of living is all but inevitable. The income of the spouses and the assets they currently own now have to support two separate households.
It can be very difficult to cover two mortgages or two rent payments and two sets of utility bills every month with the money that used to go toward the costs of one combined household. Most divorcing couples experience a temporary reduction in their standard of living when they initially divorce because they have to stretch their income further.
The actual process of divorce may exacerbate standard of living reductions. The need to split property and responsibility for financial debt can force people to make sacrifices regarding their overall standard of living. That being said, the standard of living that spouses enjoyed during the marriage is one of the factors that the courts need to consider when dividing their property and handling support requests during divorce litigation.
People can sometimes reduce the uncertainty about their financial future during divorce by working toward an uncontested divorce. They can keep the overall court costs lower and can prioritize securing specific economic terms that are important to them. In many cases, divorce can lead to a better budget and greater financial flexibility when people no longer have to combine their responsibilities and income with a spouse who might be unpredictable or irresponsible.
Having a realistic understanding of divorce laws and the property division process can help people know what to expect at the end of a marriage. Spouses who focus on their long-term standard of living may ultimately be able to negotiate more reasonable terms for an upcoming divorce.
