No matter who you ask, inflation has impacted many peoples' finances over the last couple of years. The average American has seen the costs of food, fuel, and other goods skyrocket. But the gas pump and grocery store are not the only places you have to worry about the increases. Inflation can impact you if you are currently considering or going through a divorce. You need to consider discussing a few impacts with your divorce lawyer.
If you are the custodial parent of minor children, a child support order may be a part of your divorce negotiations. Raising children is much more expensive than most people think.
While you may consider many of your children's significant expenses, other expenses such as extra-curricular activities are sometimes ignored. The quickly rising prices in the grocery store will have an impact when you are feeding multiple children.
Child support guidelines in many areas are based on specific formulas. Some states use various worksheets, while others use a particular income percentage. Unfortunately, these calculations may leave you without enough money to provide for your children. Although your divorce attorney can return to court at a later day and argue for an increase in your support order, it is best to negotiate as much as you can upfront.
If you are a dependent spouse asking for alimony, inflation and continued rising costs will impact the award you need to maintain your standard of living. You and your divorce attorney will need to consider this when you are preparing your budget to submit to the court. Acknowledging these rising costs in advance will help you present a realistic budget that may come close to meeting your needs and not leave you destitute in the future.
The rapid rise in real estate values and the fluctuation of the value of your vehicles and other assets over the last couple of years may significantly impact your equitable distribution. You need to discuss with your attorney some ways to ensure the assets you accept have as much stable value as the assets you leave on the other side of the table.
For example, will it be fair if you accept the marital home at the inflated value it currently is, and then the bottom falls out of the real estate market? While there is no way to foresee precisely what will happen in the future, the impact of inflation is a point of contention.