I’ve recently been thinking about seeking a divorce. I’m not sure, though, where the divorce will leave me financially. I’m just concerned about the cost of the divorce and wish to know if it will affect my credit.
Please help!Concerned person
First things first, consider the legal costs. Amicable split up might be a bit cheaper than a contested divorce. However, this is not the primary reason for insolvency.
The top factor that might significantly affect you financially is the simple fact that you’re going back to single life. Living a single life often lowers your income and racks up your costs. In marriage, two can live cheaply as one since you’re sharing fixed costs such as utilities and mortgages.
Joint debt is another pain in the neck that can keep you stuck with your ex-spouse even after the divorce. Your creditor is not a party to your divorce, meaning any missed or late payment of your joint debt will continue to affect your credit score regardless of who was supposed to make the payment. We talk about this further here.
You might not realize how much getting divorced will affect your finances until you go through it. So, you shouldn’t get offended by financial ads aimed at people who’d gone through a divorce or lost a job.