If you are facing a divorce, there are likely many concerns running through your mind. Aside from the emotional toll, dealing with debt and divorce can weigh heavily on anyone. Managing debt during a divorce can be easy if you where to look for assistance.
Handling debt during a divorce can impact your finances. That is because your marital assets – jointly held debt – can be divided between you and your spouse. Managing debt during a divorce means understanding every aspect of the process.
Every divorce is distinct, and there is no one-size-fits-all solution.
How do I manage debts during a divorce?
Start by noting that this information is for general guidance only – it is not legal advice.
A divorce does not negate responsibility for the debt. You are still responsible for paying any debts you have. There is jointly held debt and personal debt. You do not receive a grace period with creditors simply because of your situation. Start planning as soon as possible. Paying off debt during a divorce should remain as crucial as purely legal matters.
Here are some tips to consider from the start of the divorce process:
- Be realistic about your money situation. While it may be enticing to use your divorce as an opportunity to spend money you do not have, remember you already have responsibilities to juggle.
- Begin tracking your finances. All of the collected data will be helpful as you plan on handling debt during a divorce and after. Knowing your debt amount, payment schedules, and interest rates will help you make better decisions about managing your finances and not making risky financial decisions.
What resources are available for handling debt during a divorce?
- Do not ignore your debt. Make sure you deal with debt and divorce responsibly. This is important even if there is no impact on your finances.
- Keep track of your finances. This is one of the best ways to protect your credit score. This means making sure that you are monitoring your spending and that you are paying off any debts that you have.
- Adhering to a budget is an excellent way to keep your finances on track. If you need help creating one, contact The Law Offices of Ronald E. Stadtmueller.
Does divorce impact your credit score?
While your marital status does not appear on credit reports, financial decisions during your marriage can affect your credit score. A divorce does not have any significant impact on your credit score. However, your FICO score may be affected if you have a lot of late or unpaid debt. Your FICO score can affect other aspects of your life. Your income, savings, and insurance premiums can all be affected by your credit score.
Handling debt during a divorce means looking at all aspects of your finances, including your credit. That said managing your debt during divorce makes sense.
What happens to your credit history during a divorce?
It could sting your credit score if you go through a divorce and do not have the financial resources to manage your debt. This is because credit scores consider your payment history, and not paying off debt during a divorce could impact you negatively. Consider working with a financial professional to aid you in sorting your finances out.
Try to pay down as much debt as possible. Make efforts to submit payments on time to avoid damage to your credit score. Handling debt during a divorce means taking responsibility and being proactive.
Guidance from a Trusted Resource
Transitions can be overwhelming, and making significant changes to your (financial) lifestyle takes work. Whether it is understanding your income, expenses, and assets or creating a budget, getting trusted information can be helpful.
The Law Offices of Ronald E. Stadtmueller, a Bankruptcy Debt Relief San Diego, provides legal guidance. Our team is ready to help uncover options regarding finances and budgeting. Our certified Bankruptcy Specialists work with people every day to recover from financial setbacks and can help you create a plan.
When you have exhausted your resources, the benefits of filing bankruptcy often outweigh the risks. We aim to help you achieve freedom from debt and start fresh. Trust us, for we draw on over thirty years of experience guiding clients in California through bankruptcy. Allow our attorney to help you regain a firm financial footing. Let us evaluate your current financial situation and discuss the options available so you can restore control today. Contact the Law Offices of Ronald E. Stadtmueller to schedule your free consultation.