How Unemployment Affects Divorce
It is no secret that divorce is stressful and demanding. The matter is made even more complicated when you or your spouse is jobless. Dissolving your marriage in such an instance is tricky because no matter how you paint it, there is a high probability that things will not end up well for both parties.
While this is tough to accept, it is unavoidable in some instances. There was a case where the partners had more debts than assets, and the man was also unemployed. Even though it was not the man’s fault to be jobless, it negatively affected the divorce process.
The court sees marriage as a partnership, like a business deal between two individuals, so when divorce springs up, it centers on dividing the union’s assets, responsibilities, and liabilities. Though your partner’s fault can affect equitable asset distribution, it is not an automatic factor.
Extenuating circumstances
This piece will reflect on four factors—negative financial, negative non-financial, positive financial, and non-monetary contributions to the union. These factors help determine how to distribute assets, liabilities, and responsibilities equitably during divorce. While it is relatively close to 50/50 in most cases, it is theoretically possible to use another division method.
The court will likely conclude that regardless of negative financial and non-financial contributions, you deserve a fair share of what you earned, bought, or acquired during the union. You will probably walk away with something intangible if debts are more than assets. However, if you have primarily assets, you are entitled to the benefit of the marital aspect of the assets.
It is crucial to seek guidance from your lawyer on preserving your marital share because unemployment can affect even the assets you had before your marriage. “Not taking proactive steps may leave you in a difficult position, struggling to receive assets you deserve,” says Attorney Samah T. Abukhodeir of The F lorida Probate & Family Law Firm.
While you cannot entirely stop this negative impact, you can minimize it. A lawyer will look at the uniqueness of your case and carve out custom-made solutions.
When the Unemployment Is One of Your Faults
Unemployment might not necessarily be anyone’s fault. For instance, it may result from a firm shutting down or getting fired unjustly. However, it can also be one’s fault, such as if they willingly quit their job.
Implications of Child and Spousal Support
Imputation is possible for someone who lost their job due to their own fault, and child and spousal support becomes a bone of contention. Imputation entails crediting an individual with earning an income that they are not receiving in reality.
For instance, if the man quit his job to avoid child and spousal support or the management fired him for misconduct, the court assumes it is not your responsibility to share in his burden. In other words, you do not deserve to lose support because of your partner’s harmful acts.
However, the reality remains that if the man is indeed jobless, he will find it challenging to pay support for a given period. This does not, however, stop the court from imputing the income to him to make him legally responsible for it, even if he does not pay. You can receive all the accumulated support if he eventually gets a job.
Effect on Foreclosure, Marital Home, and Other Assets
Expensive bills are the most immense pressure for the unemployed. For instance, coping will be hard if one cannot fulfill a monthly mortgage repayment plan. However, if there is equity, you can apply for forbearance to buy you time to prepare the house for sale. You may quickly have some sigh of relief if you can get out of the mortgage, but it also means that you will need to find somewhere else to reside.
While keeping the house may be out of the question, you may consult with a financial planner to tentatively determine where to stem the flow. You also need to speak with your attorney to understand the legal impact of your decision.
Other costly loans may also cause confusion during divorce. You can also contact a financial planner or get rid of the expensive items to repay the loans and preserve the equity you may still have.
Conclusion
There is no gainsaying that unemployment by either or both partners brews tension and pressure during the divorce process. It may even be the reason for wanting to end the marriage. You want to make a quick decision to avoid losing the equity you have spent your marriage gathering.
However, do not dispose of any set without reaching an agreement with your partner. Speak with a family lawyer immediately to understand the dos and don’ts of the process before acting. The ultimate aim is to safeguard your finances.
