There are two primary costs associated with divorce. First, a couple must incur filing fees and some representation-related fees in order to secure a legally recognized divorce. Second, it often costs a significant amount of money to transform a couple’s joined living situation into two separate living situations. From purchasing a second residence to purchasing an additional Netflix account, the practical side of divorce expenditures is often both frustrating and requires substantial investment.
Because divorce costs couples time, energy and financial resources, it can either be tempting or necessary to turn to credit in order to make ends meet. Whether a divorcing couple chooses to take out a second loan on their shared real estate or an individual spouse opens a credit card or two, credit can help divorcing spouses remain financially afloat as they navigate the transition between married and single life. However, it is important to approach the subject of credit with caution for several reasons.
Credit Considerations During Divorce
Credit scores impact everything from one’s ability to secure adequate housing to one’s ability to secure a car loan. As a result, it is important to maintain a good credit score whenever possible. When individuals turn to lines of credit during divorce and are do not carefully consider whether they will be able to pay back these lines of credit on time, they may be setting themselves up for significant financial challenges. Under the most extreme circumstances, they may be compelled to file for bankruptcy, which damages an individual’s credit score for a number of years.
In addition, it is important to consult an attorney before securing lines of credit if your divorce has yet to be finalized. If you take out lines of credit on joint accounts or in regards to marital property without first consulting your attorney, you could find yourself in significant legal trouble. Generally speaking, all income, assets and property acquired during a marriage must be treated as marital property and divided evenly. A judge may frown (possibly with great severity) upon seeking credit or selling off assets without permission, at this specific point in time. An attorney will be able to advise you of your legal and financial options so that you can avoid getting into predictable forms of trouble with the court.
Legal Assistance Is Available
If you have questions about the divorce process generally or about the ways in which divorce can impact personal and/or family business finances specifically, please consider scheduling a consultation with an experienced family law attorney at your earliest convenience. Asking questions early and often during the divorce process can help to ensure that your needs are met and that your priorities remain at the forefront of your case as it progresses.
There is no question that divorce can significantly impact the finances of both spouses. However, experienced legal guidance from an Arlington Family Lawyer, like one from Brandy Austin Law Firm, PLLC, can help to mitigate the negative financial consequences traditionally associated with the divorce process. Please consider scheduling a consultation today so that you can benefit from professional guidance and support as soon as possible.