How will divorce affect my finances?

On Behalf of | Feb 22, 2021 | Divorce

If your partner spends more than you would like, divorce gives you a way to regain control of your finances. 39% of those in a recent survey said financial issues had played a role in the breakup of their marriage. There are often many valid financial reasons to consider divorce. It frees you from having to worry about what they spend. However, it can also bring additional costs you might not have considered.

Divorce can hurt your finances in the short term

The survey found that 43% of people left their marriage with at least $5,000 of debt. Many left with considerably more. Here are some things you should do:

  • Divide your debts: You will need to split most debts incurred during the marriage. Your spouse may deny that debt was their doing, regardless of any informal arrangement you had that they would pay it back. This could leave you owing more than you hoped. You may be able to challenge certain debts.
  • Protect your credit rating: Where you are both still responsible for a debt, it is crucial to separate it into two. Do not rely on your spouse to make their part of the payments on time. If they do not keep up with their commitment to a joint debt, it can negatively affect your credit rating.
  • Plan for additional expense: You will need to spend on registration fees and legal representation. You may need to rent somewhere else to live during the divorce process or pay extra child care when attending divorce meetings and hearings.

Seek help to assess your financial situation and gain a realistic understanding of how that will change with divorce. It will allow you to build a more positive financial future for yourself.