How a Divorce Can Impact Your Bank Account

Divorces are complicated situations to navigate, and they aren’t getting any easier as they become more and more common. Between the various facets of litigation, obligation, and the sheer stress associated with the event as a whole, taking a few minutes to understand how it is that divorce comes together can be a very valuable learning investment. In this particular article, we’re going to look at how it is that the different types of divorce settlements can change the outcomes of a divorce agreement, so that we can have a better understanding of our options going forward.

In general, a couple will try to pursue what is known as a No-Fault divorce that is Uncontested. This means that everyone involved in the relationship is in agreement with the proceedings, and wants to pursue the agreement with as little hassle as possible. Also known as an amicable divorce, this sort of arrangement is by far the most cost effective, as it involves a minimal amount of litigation and court time. However, if even one point of the divorce document should go up for dispute, it becomes a contested divorce, and the couple must start coming up with legal arrangements to help them resolve their respective claims against the issues at hand.

Complications can also arise for divorcing couples when there is an issue of ‘fault’ at hand. Fault is a concept that suggests one of the people in the relationship was causing the divorce through perhaps adultery, some form of abuse, incarceration, or even some form of physical illness. While filing for a ‘faulted’ divorce is fairly out-dated, it is still sometimes claimed in the more bitter of proceedings. It is in these situations that legal battles tend to escalate, and expensive proceedings tend to be drawn out be the emotional contexts of the event itself. Worse yet, the faulted mortgage could also be contested, meaning that the couple is then also going to be arguing over both the integrity of one individual in the marriage, as well as their respective claims over particular assets and incomes going forward.

Aside from the proceedings of an actual divorce, couples can also file for a process known as ‘annulment’, which actually strikes a marriage from the record. This means that, as far as the law is concerned, the marriage never really happened in the first place. Such an action is usually filed for shorter term marriages, and can be submitted on the grounds of things such as misrepresentation, adultery, or even a general misunderstanding about the lifestyles of the spouse.

While the end result of all these actions creates the same outcome for the married couple, each one comes with its own level of costs and hassle. As such, divorcing couples should take the time to reach up on their options, and to understand how it is that they measure up against their particular situation.

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