Friday, April 27, 2007

How To Deal With Debt After A Divorce

After a divorce is said and done, there are financial issues that always arise that can put a person into a downward spiral to financial ruin. Once the divorce petition is filed, it is important to start thinking of the future and determining what your financial needs are going to be once you are no longer married. Many people think about these issues when its too late and are stuck with outrageous car payments, mortgages, or rents that leave them with a negative balance in their checking accounts at the end of the month. No matter what, after a couple is divorced, one household is split into two, and everyone needs to make adjustments accordingly. In order to insure that a divorce doesn't ruin you financially, here are a few tips:

1. Do not be emotionally attached to your assets. Do not lobby to keep a piece of real estate that you will not be able to carry the mortgage for on your own. It is better to have your interest bought out by the other party, or to sell the property and split the proceeds then end up keeping property because you are emotionally attached to it. If you are solely responsible for the mortgage and are unable to sell the property, if you are having trouble making the mortgage payments, you could end up in foreclosure.

2. Keep the spending on your credit cards to a minimum. The less debt you accumulate during the pendency of a divorce, the less debt you will carry into your new life.

3. Start making lifestyle adjustments from the moment you file your Petition. Do not wait until the Judge signs off on your Final Judgment of Dissolution of Marriage.

4. Create a budget and stick to it.

5. Keep good records of all expenditures that are joint expenditures so that you can be properly credited for them at the time of Final Judgment.

If you would like to read more tips on how to stay financially savvy in the event of a divorce, see:

1 comment:

Anonymous said...

i have a questions, the judge ordered the house to my wife for her to pay but the mortgage is in my name, i know she wont pay it is there anything i can do to aviod her just letting it go into foreclosure and damageing my credit