What Are the Financial Implications of Divorce During the Pandemic? 

It should come as no surprise that divorce can radically change an individual's lifestyle. It not only has a huge impact on how one's personal life will unfold going forward, but it also has a major financial impact on both parties. In these uncertain times, though, divorce can make finances seem even more uncertain than ever before. In fact, the financial implications of divorce during the pandemic have made divorce a far more complex topic than it was even a year ago.

The money that individuals bring in plays a big role in the divorce process. An individual's income is used to determine what, if any, kind of support he or she might pay towards the other partner when the divorce is finalized. With so many people losing their jobs during the early stages of the outbreak and many others having drastically reduced income, those choosing to get divorced during this time may face even more challenges.

What's even more difficult to deal with is how this situation has impacted business owners. Business valuation can be tricky to determine at even the best of times, but the pandemic has driven down values in ways that few can predict. Even worse, the necessity of taking out loans from various government agencies has drastically altered what balance sheets look like, making it harder for courts to figure out what the real value of a business is when deciding on issues like splitting assets. 

These are all high-level issues that don't even get to one of the most important financial issues, which is dealing with the uncertainty of the future for many. Some individuals are experiencing temporary financial lulls, while others might find that there is no financial normal to which they will be able to return. Asking the courts to make decisions about what one's future earnings will look like seems almost impossible when the individuals themselves cannot honestly say that they know what their earnings potential will look like in the short-term. 

Determining the financial implications of divorce at this time is more difficult than ever, with the lights at the end of the tunnel still seeming dim. This does not mean that divorces have stopped, though, nor does it mean that the issues that lead to them have been made any easier. If you are dealing with any issues pertaining to divorce and need advice, make sure to contact the Sabra Law Group at 646-472-7971 to get the help that you deserve.