Households can vary greatly in their income situation. Some see fairly steady income year to year. Others have a more volatile income situation, with income shifting quite a bit from one year to the next. A recent study indicates that there are a fair number of Americans who fall into the latter group.
The study, by The Pew Charitable Trusts, looked at income shifts in American households between 2014 and 2015. The study found that around a third of households in the U.S. saw at least a 25 percent shift in income (up or down) over this period.
Now, concerns related to shifting income can come up in connection to many different things. One is divorce.
For one, a person who is getting divorced may worry about how heavily their income situation will shift as a result of the divorce. A divorce is one of the things that can create income volatility for a person, given the financial implications of dividing one household into two. Skilled attorneys can advise individuals on how different issues in their divorce could impact what their financial situation after the divorce would be.
Also, if a couple that is getting divorced has historically had a volatile income situation, it could potentially have impacts within the divorce. Such a situation could affect what kinds of concerns the divorcing individuals have when it comes to the financial matters in the divorce and could create some added challenges when it comes to these matters. Getting divorce legal guidance tailored to the specifics of their situation, including their financial situation, can be important for a divorcing individual.
Source: CNBC, “Wild income swings can play havoc with your finances,” Kelli B. Grant, March 9, 2017