Can Your Divorce Make You Go Broke?

Undoubtedly, a divorce is an emotionally upsetting event. Still, it is important to take a reasoned look at the financial aspects of a divorce or it will be worse for one, the other – or both! – of the parties involved. Here are a few suggestions that will help you from going broke during one of the most painful periods of your life:

divorce cost

woman returned wedding ring to husband .
Source: istockphotos

First, Understand Where the Assets are Located – This problem is not just for the women in a relationship anymore. There are plenty of relationships where both partners contribute equally – and significantly – to the assets in a household. Both should share fairly in the disposition of these assets when a divorce is finalized – and knowing where they are should be the first order of business.

Second, Get Your New Financial House in Order – While most partners have credit card and bank accounts in both their names, it is a good idea to sever those ties as soon as possible. Agree with your spouse to establish your own separate accounts and then cancel the mutual ones.

Third, Check All Relevant Financial Reports – Your partner may be trying to hide assets from you before the split. Unethical, yes, but usually not illegal. However, he/she cannot hide them from the relevant government agencies. Obtain copies of past tax returns, investment and bank statements as well as current credit reports. There is a wealth of information in these documents that can give clues as to what assets exist.

Fourth, Use Mediation if Possible – Although many divorces involve acrimonious dealings, the more amiable ones will actually cost the two parties a whole lot less as the use of mediators – rather than attorneys – is far less costly.

Finally, Memorialize Everything – Disgruntled partners will promise the world at the outset but often change their minds once a little time, distance – and yes, greed – start to play a part. Do not take anything for granted. Instead, have your attorney write it down in contract form and have both parties sign. Then, if there are problems, you will have some legal recourse.

For further specific information on finding debt relief during a divorce, please contact us at Superior Debt Relief.

Leave a Reply

Your email address will not be published. Required fields are marked *