Divorce is a difficult undertaking. It can take months or even years. You literally see your retirement and investments go up in smoke as they are divided up between you and your spouse. Child custody is always complicated and results in many emotional days. But what many people do not consider is that divorce often results in bankruptcy in one or both of the spouses. Many people are unable to rectify that they have moved from a dual to a single income home and fail to adjust their situation to match their reality. Here are a few tips to get you through the financially hard times.
If you have a lot of valuable items, like jewelry or collectibles, consider selling a few of them. Divorce often leaves individuals financially strapped, so it is a good way to turn some of your assets into cash. It also allows you to move on and “cleanse” yourself from your spouse’s old belongings. Never underestimate the power of a good spring cleaning.
You must re-title all of your assets. If the divorce forces your other spouse into bankruptcy, that may cause the creditors to try to come after your assets. It is imperative that you show the world what is and is not yours.
Don’t forget to take a second look at other aspects of your life. For example, consider changing your name. Go over you will, you probably need to update it after the divorce. Generally, take control of your life. Come up with a new filing system. Pick up a hobby. Do something that can become 100 percent yours and eventually you will see that you have built a brand new life.
If you believe that bankruptcy may be imminent then you may want to speak to an attorney. Bankruptcy is a viable option depending on your situation and it can be off your record in only a few years. But before you decide to act, it is probably best to go over your situation with an attorney. There may be other options.
