Everyone knows divorces cost money. Whether it’s the lawyer’s fees and court costs, or the simple fact that your family is going from two incomes to one (or one income to half an income!), the effects can be rough! But while the split is likely to leave you feeling like you need to pinch pennies, it doesn’t need to trash your finances. So what does one do to ensure your financial future? Several things, actually, but step one involves protecting your credit.
Tips for keeping your credit up after divorce:
- You need to take stock.
Evaluate your financial reality. You won’t have any idea of what you’re up against if you don’t know what your current situation is. We get it – it sounds scary. And probably isn’t much fun. But digging yourself into a hole you can’t get out of would be a lot worse. So this needs to be your starting point.
The idea is that you need to be aware of what you have, what you need, and what’s available to you. What are your debts that need to be paid, what monthly bills are you responsible for, and what assets are available to you? Write all of this down, as it’ll help you understand what your financial situation looks like moving forward. (You could even make a list of items you could sell if that would help get you out of a pinch.)
- Avoid making your situation worse than it needs to be
Everyone has times when their needs outweigh the resources available to them. Those can be rough times. But there’s a difference between putting your mechanic’s bill on your credit card because your car needed a new axle and you didn’t have the cash on hand, and buying yourself a few new pairs of expensive shoes because you needed ‘cheering up’. Getting further into debt for frivolous reasons won’t help you in the long run, and it can actually hurt your credit in a major way.
And on that note, if there’s one piece of advice we’d like to give you it’s this – avoid signing up for more credit cards at this time. It may sound appealing to know that you have that safety net in case the divorce costs get out of hand, but the temptation to spend money you don’t have has gotten a lot of people into trouble over the years. So keep your unnecessary spending to a minimum, and don’t take out any more lines of credit.
Divorce is a hard time, so don’t make it worse for yourself!
Financial issues are often one of the greatest challenges people in Oakland County face when getting divorced. Everything from dividing up assets and figuring out alimony, to learning to live with a different income, it can be very difficult. But you don’t have to navigate this process alone. Here at The Kronzek Firm we understand exactly what you’re up against, and we can help you plan for a better future.
For decades our skilled divorce attorneys have been helping the people of Novi, Ferndale, Farmington Hills and Royal Oak to prepare for their post-divorce futures. That includes preparing for new financial realities, and making lifestyle changes. If you’re considering divorce, and have questions or need help with any part of that process, call us at (248) 479-6200. Our experienced family law attorneys are available 24/7 to assist in whatever way you need.