A divorce is a legal act of separation of a married couple due to various reasons. Usually, they bring their divorce to the court in case of arguments or dispute regarding their asset or custody. Maybe you’re in a situation where you’re thinking to get a divorce or perhaps you’re trying to find out whether a divorce can affect one’s finances or not. Although the decision is in your hand, a divorce can affect your finances, and it can be pretty bad, here are some reasons why.
Dispute argument of assets
If both of you are a young married couple, chances are both of you are working to buy a house or a place to settle down. Although it sounds great, this might cause an argument when you’re divorcing, especially when both of you contribute to buying a property. Although who’s name will win the legal case goes to the owner of the house, it is still a case to happen, which can cause more clashes. If you lose the case, you might lose your assets which means looking for a place to stay, causing you to have more fees and expenses to pay.
Besides of having to spend a separate holiday, and a possible different last name, your kids, can also affect your finances. Even when you are divorced and separated from your kids, you are still obliged to spend more, such as for medical insurance, educational support, and child support. Your income might be deducted for all of this expenses, which can be quite troubling in hard times.
While the divorce itself doesn’t hurt your credit score, it could lead you to one. Losing a household income might cause financial strain, which leads you to missed payments on your bills such as credit card, loans, electricity and many more. A bad credit score is often made due to fees that you miss, so make sure that you think about it again before you get that divorce.
Tip: create a budget as you divorce, think and prioritize on what you can and cannot afford.
Not solving the divorce
If you kept the divorce up while you keep debating on the case, it would only worsen your financial status. But how? One example is that by keeping the case up and not solving it, you have to pay lawyer’s fee which is not cheap, considering you have spent a lot to get divorced, so make sure you be a bigger person and just solve what you have to.