What is often overlooked by this huge majority is that their financial situation will likely get worst during and after contested divorce proceedings.
Are you frustrated by your family finances and think that a divorce might help? Think through these 5 big points FIRST.
Although it can be difficult, take a snap shot of your financial picture now as a couple and determine what actual, total debts and assets exist.
Look over both your credit reports to be very clear on all financial obligations.
Especially in today's market it is important to determine how to handle the house if you own one.
Whose name is it in? Do either of you want to keep it? Will one party be "bought out," and is there enough equity to allow a refinance? 3.
Create a detailed budget, based on your income level and expenses as a single person and see if it works! Will you be able to cover everything? Really?? How about paying for the divorce itself? 4.
If you have shared debts, or if your spouse is likely going to be paying you support, will they be able to make their payments? There are important implications for you personally if your ex-spouse does not meet his/her end of the bargain on liabilities allocated to them through the divorce proceedings.
If you are pretty certain that you are headed for a break-up, now is the time to close as many shared accounts as possible.
(credit cards, gas cards, department store cards, phone cards, etc.
Close the accounts if you are not carrying balances, or pay them off if you can.
Remember that for jointly held credit cards and for any other debts incurred during the marriage in community property states, you have shared liability - and thereby share any potential negative credit rating impact.
This means that if your spouse does not make payments after the divorce, it could come back to haunt you - and your credit rating.
If back taxes are owed from the period you were married, be aware that the IRS does not have to honor a decision from a divorce judgment.
They can and will hold you each liable for the entire amount.
Consult a tax expert to help with your divorce tax planning.
Focus now on rehabilitating your credit and financial health.
Begin a savings plan (at least if it means saving $20.
00 a month!).
** If you want the help of a professional debt resolution firm, researching the company THOROUGHLY before hiring them.
** I have personally used bills.
com and myfico.
com to help with organizing bills and determining my true financial picture!!