Photo of Kenneth L. Gibson Jr.
Photo of Kenneth L. Gibson Jr.
Photo of Kenneth L. Gibson Jr.

Divorce should sever financial ties as well as emotional ones

On Behalf of | May 6, 2021 | divorce | 0 comments

Divorce will hurt your finances. Aside from the money you spend on the process, you will have to rely on one income instead of two. Not only will divorce reduce your household income, but it will also raise your spending per head.

Bills do not halve when you split. One person living in a house does not use half as much electricity as one person. The window cleaner will not give you a 50% discount when your spouse moves out.

Financial independence is crucial when your marriage ends

One of the first things to do when deciding to divorce is to separate your accounts. If you have a joint credit card or bank account, your spouse could run up debt for which you remain responsible. If they do not pay on time, it will affect your credit score as well as theirs.

Do not forget about the mortgage on your home. You might decide to sell the house, but you still need to pay the mortgage until you do. If you agree with your spouse to pay half each, you need to be sure they pay on time. Otherwise, it will harm your credit score as well as theirs.

When dividing assets, you can contest debts you feel do not belong to you. However, a court might not approve your request. Closing all joint accounts reduces the chance you get into this situation.

Ensuring you get a fair share of assets in your divorce is crucial to your financial independence. If you leave with less than you entitled to, you increase the risk you get into debt you cannot pay. Having financial freedom is key to gaining the personal independence you seek by ending your marriage.



FindLaw Network
Photo of Kenneth L. Gibson Jr.