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How to account for the financial impact of a divorce

A divorce can have significant financial implications for North Carolina residents. For instance, a person may have trouble maintaining a current lifestyle while living alone. Ending a marriage could also make it harder to retire on time, and this may be especially true for those who are doing so later in life. Ideally, newly single people will create a budget that will account for the expenses that they will need to pay on their own.

These expenses could include the cost of buying or leasing a car or buying or renting a home. Those who are planning on getting divorced or who already are should also consider how they will pay for medical care, groceries and other essentials. It is also a good idea to make a list of any costs that could be incurred during the divorce itself and keep track of them.

Can sleeping apart help your marriage?

Sleeping with your spouse could reduce your quality of sleep. Couples that sleep together reported frequently having their sleep disrupted by their partner.

Blanket hogging, snoring, tossing and turning, sweating and other disturbances caused by one spouse may induce marital problems and possibly health problems too.

Protecting business interests with a prenuptial agreement

Prenuptial agreements have a better reputation today than they did a decade ago. It's becoming increasingly common for couples planning to tie the knot in North Carolina to explore their options with a prenup. This document can spell out who owns what before the "I dos" are exchanged.

A prenup can be especially beneficial if one or both parties owns a business. One option is for a spouse-to-be/business owner to determine the company's premarital value so that it won't be subject to distribution should a marriage end. It's also advisable that an owner decide what will happen with business appreciation or depreciation from the date of marriage. For example, the business owner may opt to share profits and losses with their new spouse.

How coparents can coordinate financial objectives

Divorce involves a lot of complicated emotions, and discussing the financial aspect of coparenting can make the entire process even more intimidating. For parents in North Carolina, there are several ways to smooth out the transition. Without financial complications, sharing the responsibilities of raising children will be much easier. Planning and communication should be top priorities.

The best way to reduce financial friction in coparenting situations is to describe all the responsibilities in the divorce decree. This requires spelling out in detail who will pay for what, including housing, food, clothes, entertainment, field trips, medical bills and possibly even higher education. When all responsibilities are clearly established, the chances of a conflict arising in the future will be drastically reduced.

Prenups still offer the most protection for married couples

Although married millennials may be more likely than their Gen X or baby boomer counterparts to keep finances separate, this might not be enough to provide financial protection in a divorce. While equitable property states like North Carolina usually require an equitable but not necessarily equal distribution of marital property, an attorney could argue that either spouse's earnings were also marital property.

Instead of relying on separate accounts to ensure financial security in case of divorce, financial professionals advise creating a prenuptial agreement. When couples create a prenup, they must be upfront about their finances. This could actually be a healthy conversation that leads to greater trust. However, a prenup is not right for all couples. If this is the case, there are other steps spouses can take to safeguard their finances.

Impact of divorce on student debt

A divorce is often one of the most difficult processes a person can go through. It can be emotionally, mentally and financially draining, and it can raise a lot of questions about the division of assets and liabilities. People who are going through a divorce in North Carolina might have questions about how property is likely to be divided. If one or both of the parties has student loans, the division of that liability can complicate the proceedings.

Generally speaking, if one of the spouses incurred student debt prior to the beginning of the marriage, the debt is the responsibility of that person alone and not of the other spouse. Cases may be more complicated where student debt came on during the marriage. It may then be considered marital debt and the family court will usually divide it between the parties based on the principle of equitable distribution.

Four considerations when telling your kids about your divorce

If you recently learned that divorce is in your future, you may wonder about how you should tell your kids about this news. Planning an important conversation like this can have many facets. For example, you might wonder when should you tell them, who should participate in the conversation, what they might understand and what you should expect from the conversation.

Pick the right moment

Divorce: How to protect yourself

The divorce rate of couples 50 and older has rapidly increased in recent years. This means that after 20 or 30 years of marriage, couples are now splitting finances. If you have been saving and investing together for so many years, dividing finances may be difficult. Here are some tips on how to protect yourself.

Know your assets

New child support mandate urged for SNAP recipients

Many people in North Carolina rely on food assistance from the Supplemental Nutrition Assistance Program or SNAP, formerly known as food stamps. This government program serves an average of 40 million people across the country, helping them to make ends meet and receive assistance with basic nutrition needs. In many cases, SNAP recipients are single parents raising their children. Around 37% of children living in single-parent families are also living in poverty.

There are a number of complex causes for these children's poverty, and SNAP makes only a small dent in the burden borne by their parents. Some argue that one major cause of poverty in single-parent households is the failure of non-custodial parents to pay child support or fulfill their obligations under an existing support order. However, less than 50% of all poor single parents with custody of their children even have a child support order in place. In some cases, these parents have less access to and time to deal with the legal system to obtain a support order. In other cases, they feel that their informal support agreements with the other parent will be endangered by going to court.

The connection between divorce and student loan debt

People in North Carolina with student loans may be struggling under significant debt burdens compared to borrowers just a decade earlier, and this can in turn put a strain on their marriage. Over the last 10 years, the average student loan balance has risen by 62% to $32,000. Furthermore, three times as many people owe upwards of $50,000 compared to 10 years ago.

In a survey conducted by Student Loan Hero, over 10% of the 33% of people who said money disagreements led to their divorce said that student loan debt had been a problem in their marriage. The size of these debts can mean that people are unable to pay for a wedding or a home.

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Protect Yourself, Your Finances And Your Family For The Future. Call Susan Gray Law, P.A. Today:
336-701-6521 or send an email.

110 Oakwood Drive, Suite 410
Winston Salem, NC 27103

Phone: 336-701-6521
Fax: 336-529-6325
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