It is widely known that divorce is expensive. By the time you add up attorney’s fees, court costs, mediation costs, and possibly the cost of refinancing property, a divorce can cost as much or more than a wedding. But the expense of a divorce is not the biggest financial concern most people have.
There are few things in life that can throw a wrench in people’s finances like a divorce. The loss in income is likely greater than the drop in expenses. There may be joint debt that you have to figure out how to repay and wills, life insurance policies, and other documents that are now outdated. If you and your ex-spouse divided up financial responsibilities – for example, you did the budgeting and he or she took care of retirement planning – you may be worried about handling tasks you did not have to deal with before. However, by arming yourself with knowledge and taking the time to create a new plan, you can have a financially successful future.
Divorce can be a long and painful process – but add debt issues to an already emotionally heated experience and the fire can quickly rage. To cool the situation down and do the right thing for you both, it is important to know the facts about debt and divorce.
Divorce is traumatic — emotionally, physically and financially. I know — I’ve been there. There’s a lot to worry about, especially if you have children, which is why you need to take control where you can. The best place to start is with your finances, which can easily become a huge mess if you’re not careful.