Income imbalance: What to know going into divorce

Differences in income may not be a significant issue during your marriage, when you compile your earnings into one account to share. However, this difference can become a serious concern during a divorce. 

If your spouse earns more than you, it is only natural to worry about what a divorce could mean for your future, and living on a single income. 

What should you know moving forward?

Your life will certainly look different when you obtain a divorce. In most cases, you may want change, but some changes can be stressful, especially when they impact your finances. 

Even with variations in your earnings, your future does not have to be in jeopardy. You have options and rights to secure your finances. In these cases, it will help to know: 

1. Your standard of living: This is one of the most important factors to determine as you approach a divorce. After all, it plays a large role in the divorce process. In simple terms, your standard of living is your accustomed financial situation, such as your ability to access resources and fulfill your needs. In the event of a divorce, the goal is to maintain this standard as much as possible. It will help to compare your budgets and your earnings to determine this standard you currently experience. 
2. North Carolina’s property laws: Most particularly, you should understand the terms of equitable distribution. You can file to divide property equitably – not necessarily 50/50 – between spouses. An equitable distribution evaluates both spouses’ income, among other factors, to determine a fair division of marital property. 
3. Your alimony options: It is also possible to obtain alimony, depending on the differences in income, earning ability and several other factors. Alimony can be temporary or long-term, so it is helpful to consider all of your options. As we have discussed in a past blog post, your standard of living will also influence your case for alimony as well. 

Anyone facing a divorce should have a detailed understanding of their current financial standing, as well as their property rights. However, it is especially critical if you are anxious about your financial future post-divorce.