4 Tips for Avoiding Debt During and After Divorce

 Posted on January 12, 2018 in Divorce

When you decide to end your marriage by getting a divorce, the process of separating the various aspects of your life from your spouse and establishing yourself in your newly-single existence can be incredibly complicated. During this time, it is easy to neglect your finances, but doing everything you can to avoid debt will help you prepare for a secure financial foundation following your divorce. 

Consider the following tips for understanding and managing your debt throughout the divorce process:

1. Get your credit report - It is important to understand your complete financial picture prior to your divorce, and obtaining a copy of your credit report is essential for doing so. This will help you identify all joint bank accounts and credit cards, as well as any outstanding debts.

2. Establish your own credit - Having a good credit score will be essential for obtaining loans, housing, and credit cards after your divorce. If you do not have an extensive individual credit history, you can establish one by obtaining a credit card in your name, making regular purchases, and paying off the balance on a monthly basis.

3. Close joint accounts - Before finalizing your divorce, be sure to close any joint bank accounts and, if possible, pay off joint credit cards or other loans. Both spouses will be responsible for paying joint debts, even if the debts are assigned to one spouse in the divorce settlement. Paying off these debts or removing one spouse’s name from the accounts will ensure that you will not be held responsible if your spouse does not make his or her required payments.

4. Set a budget - Before finalizing your divorce, you should take a look at your income and expenses and be sure that you will have the financial resources you need to maintain your lifestyle. Creating a workable budget that provides for your needs will ensure that you do not accrue additional debt following your divorce.

Contact a Schaumburg Divorce Attorney

Whether you are considering ending your marriage in divorce or are already in the middle of the divorce process, the attorneys of A. Traub & Associates can help you understand how your divorce will affect your finances. We will work with you to ensure that assets and debts are allocated correctly and establish spousal maintenance or child support agreements which will protect your financial security. Contact a Schaumburg divorce lawyer at 630-426-0196 to schedule an initial consultation.

Sources:

http://www.divorcemag.com/articles/divorce-and-debt-tips-to-ease-money-woes

https://www.womansdivorce.com/divorce-settlement.html