When you think about divorce, you may think more about the financial stress that divorce brings. While you do have to consider the financial impact of your decision, it is not all bad. In fact, divorce can be a positive choice when it comes to your financial health.
After a divorce, you have more control over your income.
You may be able to withdraw money from your retirement fund
Divorce is one of the only times that you can pull money from a retirement account early without worrying about the early withdrawal penalty. A qualified domestic relations order allows you to withdraw money without a 10% penalty.
When you cash out your retirement fund, it has its risks but it can also help you create a fresh start for yourself that you may not have otherwise.
You can choose your investments
One of the major sources of fighting between couples is finances. If you and your former spouse cannot agree on financial decisions, it can cause a rift in your marriage. You no longer have to worry about another person being a spendthrift with money or making poor investments. Instead, you have the freedom to save the money you want and spend it where you think necessary. Many people downsize after a divorce, resulting in fewer housing expenses.
As a single person, you can reset your priorities. While it can be difficult to adjust to a new lifestyle, it also gives you the opportunity to analyze your finances and make better decisions for your future.