How COVID-19 Could Impact Your Divorce Settlement
The COVID-19 pandemic has impacted many aspects of most people’s lives, including couples going through the divorce process. When it comes to figuring out finances and dividing property, the process can be daunting on its own, but during COVID-19, it has become even more uncertain. The Little Rock divorce attorneys at Destiny Law are here to help make the divorce process easier for you and your family. Here is what you need to know about divorce settlements during COVID-19:
Many courts are operating in a limited capacity because of the pandemic, which has subsequently impacted the methods of handling divorce cases through the court system. To help facilitate the divorce process and that of other types of cases that normally go through the courts, many courts have allowed for e-filing along with the conducting of virtual hearings, which entail video conferencing between attorneys and judges.
Because of the interruption of court proceedings, couples are also seeking alternatives to trial such as mediation, which can be more easily conducted virtually or via telephone conferencing. Our divorce attorneys can help determine how to approach a case if there are any delays or cancellations in your court proceedings.
Employment and Financial Standing
The pandemic resulted in an increased unemployment rate, with many workers furloughed. The ensuing recession will inevitably result in layoffs across the country, or at the very least pay cuts for many who are still able to work.
If you are in the middle of the divorce process, any negative change in your employment status could be detrimental, resulting in an inability to make child support and other payments. While the stimulus check offered some assistance, that assistance wasn’t enough for many families who are still struggling.
It’s best for couples to discuss the financial situation they’re in so that they can develop realistic expectations and come to reasonable agreements over the financial aspects of the divorce.
Decreased Share Prices and Affected Pensions
As share prices have decreased substantially, pensions have also decreased in value as a result of share-invested funds. Subsequently, all cash equivalent values (CEVs) will become outdated. While depreciated pensions may be acceptable if a couple shares them, the hit experienced with offset pensions kept by one individual may cause more uneven financial damage.
On the other hand, the pandemic may not impact final salary public sector pensions, seeing as the pension comes with a guarantee of income, which is still in place. However, offsetting for these pensions may still be unfair because while the pension doesn’t change in value, the value of the home may decrease, which brings us to our next point.
Uncertainty Around Real Estate
It can be difficult to gauge whether real estate will be negatively or positively affected, but it’s important to monitor the markets if real estate is involved in a divorce. You may experience delays if selling real estate, so take this into consideration when figuring out carrying costs and the division of property.
Consult with Reputable Little Rock Divorce Lawyers
If you are getting divorced, you need a skilled attorney on your side. The divorce attorneys at Destiny Law in Little Rock can take all of the uncertainties due to COVID-19 into consideration and advocate for you during the divorce process.
Contact us today for a free consultation!