Men and women are usually not fixated on money during the emotional proceedings of a divorce. They might be so overwhelmed with emotions like anger or sadness that they do not realize that divorce can be expensive and time-consuming. This is why residents in Lake County should think ahead to make sure they will be on solid financial ground once the process is complete.
As couples are caught up in the emotions of the divorce, they may try to “simplify” things by charging everything — groceries, car repairs, child care — to their credit cards. This could be a very dangerous practice. Racking up massive credit card debt can set a person up for financial disaster. The debtor will be forced to make potentially high monthly payments, and high interest rates will make it tough to rid cards of a balance once and for all. Falling behind on this front could affect a person’s credit report, too.
A divorcee might choose to borrow money from a friend of family member. That way, he or she won’t be subject to high interest rates. And, friends and family are usually more lenient when it comes to repayment.
Legal costs can also skyrocket if both sides are stubborn. Husbands and wives should choose their battles wisely to help minimize legal fees. They should not fight over things that have very little value. It’s a waste of the attorney’s time and the divorcee’s money.
A divorcee also needs to make sure they can cover living expenses while the divorce is in process. It’s important to estimate how long the divorce will play out and crunch the numbers wisely. If a couple thinks keeping up with important payments could be a challenge, there are a number of options to explore, such as taking out a loan.
According to financial advisers and family law professionals, the key to surviving a divorce financially is to plan ahead. That may also be the hardest thing to do at such a difficult time.
Source: Huffington Post, “Top 5 Ways to Ensure Financial Security During your Divorce,” Brendan Lyle, April 23, 2012