Marriage Money Habits and Divorce Settlements

Money habits play a significant role in marriages. While financial compatibility can strengthen a relationship, differing money habits may contribute to marital tension. Whether one spouse is a saver and the other a spender, or one is an aggressive investor while the other is risk-averse, financial disagreements can create irreparable rifts.

Should a marriage that has been fractured by financial arguments come to an end, it’s important to connect with a Port St. Lucie family law attorney. Understanding how money habits impact divorce settlements can help individuals prepare for the financial future they desire after a separation.

How Financial Habits Affect a Marriage

In many marriages, partners have different approaches to managing finances. Examples of personal money habit types:

• Individuals who prioritize budgeting, minimizing debt, and growing their savings. They may become frustrated if their partner is careless with spending.
• These people enjoy using money for experiences, possessions, and personal enjoyment. This habit can cause friction if spending habits lead to financial instability.
• With a focus on growing wealth through stocks, real estate, and other financial ventures, the approach of investors is to create long-term security. But financial stress is still possible, particularly if risky investments lead to losses.

When financial differences lead to conflict, couples may find themselves struggling to maintain balance in their relationship, which can ultimately contribute to divorce.

Should the marriage dissolve, financial habits may come under scrutiny as assets, debts, and future financial security are negotiated during a divorce. For instance, savers may have accumulated significant assets, while spenders may have contributed to higher debts. Courts in Florida use equitable distribution, meaning assets and liabilities are divided fairly, though not necessarily equally.

Also, if one spouse was the primary earner while the other managed household expenses or had a more relaxed approach to saving, alimony may be awarded to balance financial disparities. All assets will need to be fully reviewed, including investment portfolios. So, if one spouse is an investor, their financial holdings, including stocks and retirement funds, may need to be divided. The valuation of these assets can be complex and may require financial professionals.

Preparing for Divorce Based on Money Habits

Each financial personality should take steps to protect their interests and plan for their future. Savers can ensure that all assets are documented while spenders can create a budget for post-divorce life. Working with financial professionals to determine the division of investment accounts and understand tax implications of asset liquidation is typically top of mind for investors.

Regardless of your financial habits, a Port St. Lucie family law attorney can walk you through the divorce process while prioritizing a fair settlement. With a legal professional’s guidance, you can move toward an agreement that ensures fairness for both parties.

Could you use advice on how to prepare for financial independence? When it comes to securing your future in the wake of a separation, you can lean on the expertise of the legal team at Baginski, Brandt & Brandt. To learn more, contact us to schedule an appointment.