Divorce is, in many ways, a financial exercise. You’re ending your marriage, but your romantic relationship has probably been over for some time. The official divorce is just a chance for you to divide property or custody time with your children.
As such, current financial issues are always going to have a big impact on how a divorce plays out. Let’s take a look at three current situations and the impact that they may have.
The decline in cryptocurrency
For one thing, cryptocurrency firms are crashing, with many of the big exchanges going bankrupt. The value of these coins is plummeting. This could be important because, prior to the crash, there were reports that people were using cryptocurrency to hide assets in divorce. They saw it as an easy way to stash money aside so they wouldn’t have to split it with their spouse. But if your spouse did this, it means they could have recently lost nearly the entire value of that portfolio.
Rising interest rates
Interest rates going up has impacted the home and property market. For a long time, property values were simply increasing, but now they have begun to decline at a dramatic rate. Essentially, higher interest rates just make buying homes more expensive, so this reduces the pool of buyers and the values of those homes can fall. This could be a problem, though, if selling your house and splitting the money is one of the biggest property division moves you have to make.
The biggest impact of inflation is likely just that you need to account for it when you make your post divorce budget. It’s been found that your standard of living is going to change after divorce, and inflation will have an impact on that. You may also need to consider inflation when trying to determine the value of assets that you own and how that value may have changed over time.
If your divorce and property division process does get complicated, be sure you know what legal options you have.