You can’t really control divorce; every case is different, and it isn’t exactly something you can plan for long-term. And while there is no good time for a divorce, there are definitely times that can be worse than others.
Four Times When Divorce can Deal a Major Blow to Your Finances.
- When the economy is down. You are already going to have to make some major financial decisions when you get divorced. You might have to rent or buy a new house, sell your own house, buy or sell your cars or maybe even take a new job. When the economy is down, all of those things are going to get harder.
- When you have bad credit. You need good credit for most major financial decisions, like renting apartments and even opening new credit cards. While divorce proceedings do not directly affect your credit score, many of the factors surrounding your divorce will. For example, assume you and your spouse had a joint credit account. If you do not deal with this credit account before your divorce, then you are still liable for contracts you made with your lenders. Your divorce decree does not end your relationship with the lender, so if your divorced spouse fails to make payments on the account, it will hurt your credit, too. Don’t let divorce make your bad credit worse and take care of these issues in a timely manner.
- When you have kids under 19. This is a no-brainer ”“ you will need to work on child custody issues like child support. On the upside, your children may later become eligible for student loans and grants that they would not otherwise have had access to had you not divorced.
- When the real estate market is down. Many divorcing couples sell the marital home, but if the market is low, you might find that you cannot sell your home for anything close to what you paid for it. That coupled with real estate fees, land transfer taxes and the general costs of moving can deal a heavy blow to your wallet.
The family lawyers at Divorce Matters serve the entire Denver, Colorado area.