The process of a divorce can have the potential to be both emotionally and financially challenging. It is common to worry about whether you will be able to enjoy the same standard of living that you are accustomed to after a divorce has been finalized. In addition, you may be concerned about how divorce could affect your credit.
There are so many things to worry about during a divorce, and it is likely that you have prioritized the emotional well-being of yourself and your children above other issues such as finances and credit. This is one of the reasons why finances can suffer in this chapter of a person's life. However, taking small steps to understand how to gain control of your finances can go a long way.
Will my divorce decree protect me from creditors?
Unfortunately, divorce decrees hold very little power, especially when it comes to protecting you from the actions of creditors. Even if the divorce decree orders your ex-spouse to take responsibility for some of your debts, you will still be held accountable if the debt is in your name.
Could keeping the family home cause financial troubles?
Failing to sell joint assets during a divorce can mean that cash becomes tied up in property. This can cause a significant amount of credit issues for divorcees, especially if the family home has not been sold. Being solely responsible for paying the mortgage can be a huge financial burden and could cause you to build up debt. By selling the home, both you and your ex-spouse could be able to live within your means much more easily.
Plan your budget for a single income
As a divorcee, you will now be subject to only one income, unless you are also receiving alimony and child support. You will need to face up to the reality that your lifestyle may have to change as a result, so that you can pay off any debts that you have and live a sustainable lifestyle.
If you are worried about struggling financially as a result of a divorce, it is important to make sure that you get a divorce settlement that you deserve.