Managing Financial Issues during Divorce American life and relationships have taken an unpredictable turn due to the complications led by financial misbalance and economic crisis led by debt, increased bankruptcy cases, recession etc. Debt relief options like debt consolidation, credit counseling, debt management and debt settlement companies are in vogue to repair all kinds of debt issues, but seem to be in vain to control the numerous cases. To our dismay, marital relationships too has fallen a prey to this giant called debt and thus taking shape of increased cases of divorce driven by financial issues and discrepancies between spouses. Divorcees face the toughest time, as they face not only the emotional crisis of divorce proceedings and separation, but also the financial dilemma that the debt incurs, like lower standard of living and increase in expense after separation. However it is not impossible to manage your debts and finance together with your divorce, if some systematic processes are followed. There exist some financial issues that need to be resolved during divorce like child support, maintenance and division of assets, with the help of a trusted and reliable lawyer or an unbiased mediator who would resolve issues like equal settlement for both parties, without taking sides. As two people who lived under the same roof get separated, the income gets reduced with expanded expenses for each person. To make ends meet in this case, one must sort out a workable and sensible budget including the list of monthly income and expenses, bills, alimony, child support, medical support and so on. Comparing the income and outflow will help the divorcees to decide upon what expenses to cut down and how to reduce overall bills. It is crucial to control and mange one’s debts and financial deficiencies during divorce proceedings, however difficult it may be. For instance, avoid excess usage of credit cards or taking of unnecessary personal loans in order to save your financial health for future needs. On being under debt, a person should get debt relief in form of credit counseling, or debt consolidation etc accordingly. Don’t stop paying all least and most important bills to diminish the financial obligations. Significant bills like mortgage or rent, real estate, health insurance, essential utilities, credit cards and income taxes, cannot be ignored at all. To analyze one’s financial situation, one can take help of a financial advisor, who can recommend a persona; plan for financial recovery from debt related troubles during and after divorce. Maintaining a healthy credit score is vital for financial future because an excellent credit rating can help a lot during divorce as it will make financial transactions easier. Repair your credit score if necessary by paying all outstanding bills and debts. The time of divorce would require one to plan one’s financial future based on one’s goals and standard of living. Thus asset division and sharing of financial responsibilities with the spouse is important in this respect. Setting a budget and saving for the future is the final keyword to manage your finances during divorce.
Published on Nov 25, 2010
Published on Nov 25, 2010
The time of divorce would require one to plan one’s financial future based on one’s goals and standard of living. Thus asset division and sh...