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Debt & Bankruptcy: 3 Steps To Financially Responsible Divorce

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Money-troubles often lead to marriage woes, but sometimes financial restraints actually prevent couples from seeking divorce. Naturally, divorce can take an emotional toll, but it also carries a large price tag. Particularly during our country’s economic downturn, divorce rates might actually drop as couples find themselves unable to afford an expensive divorce.

Divorce is a precarious time, during which your financial future is determined. Joint bank accounts, credit card debt, alimony payments, and even bankruptcy all come into play. Here are three ways to plan a financially responsible divorce and come out the other side with a stable fiscal foundation for your family.

1.  Document Expenses, Cost Of Living, And Debt

Begin documenting your finances, including deeds and titles, and create a record of your valuables, such as jewelry and electronics. Track income and expenses by compiling tax returns and paycheck stubs. These will be used later in the divorce hearing to determine cost of living, which can all impact alimony, debt responsibility, and division of property.

2.  Save And Budget

There are many overlooked expenses when preparing for divorce. Here are a few things to consider:

  • Court costs
  • Attorney fees
  • Living arrangement costs, such as hotel rooms or renting a new apartment
  • Fees from withdrawing money from certain accounts
  • Fees for closing accounts
  • Joint debt payments
  • Real estate payments for selling property

You may need to close several joint accounts, as well as open individual ones. It’s wise to have some liquid funds, even cash on hand, for surprise expenses. For example, couples may find themselves paying off a large sum of debt all at once, an expense they hadn’t budgeted for properly.

Establish your individual credit early, opening your own credit card, savings, and retirement accounts. Be meticulous with managing bank accounts and planning an independent financial future.

3.  Avoid Do-It-Yourself Divorce

A considerable amount of future finances, including alimony, child support payments, home-ownership, and property management are determined by the outcome of your divorce. It’s vital to have an experienced family law attorney in your corner to protect your best interests. Even if separating spouses are on good terms, it can be precarious navigating debt, bankruptcy, real-estate, and tax laws. A good lawyer can help reach fair and equitable child support and alimony settlements, to secure a stable financial future.

The Law Corner In Raleigh Can Protect Your Finances During Divorce

Whether you’re concerned about joint-debt or establishing fair child support, The Law Corner is here to help ease you through the divorce process. Our expert attorneys genuinely care about protecting your family’s best interests. We’re conveniently located in Raleigh. Schedule a consultation online or give us a call at 919-424-8319 today.

 

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