Divorce and Financial Survival

No one gets married with the expectation of getting divorced someday. Regrettably, though, divorce rates are expected to continue climbing. Divorce affects all areas of your life, including your financial health, and can result in significant challenges.

If you're struggling through a divorce, there are several things you can do to minimize the negative effects on your finances.

Consider these options to help you financially survive a divorce:

1. Come to an agreement on how to divide your assets. A particularly difficult thing in any divorce is the decision of who gets what. You and your spouse both may have an economic and emotional investment in almost everything, from the house to the art collection you acquired together.

• It really is beneficial to avoid having the lawyers get involved in the process. Once the legal system is formally involved, the process is much more expensive and financially and emotionally draining.

2. Try mediation....

Many people believe that bankruptcy ruins your life and should never be considered. But bankruptcy can be a reasonable solution for some and can offer a fresh start.  It does create challenges, but those considering bankruptcy already have challenges.

Your financial situation will only get worse for the foreseeable future. Your debt is increasing every month and you have no way of increasing your income.  Bankruptcy is worth consideration under these conditions. Check off the situations that apply to you:

• You’re insolvent. Your assets and income are no match for your debts.
• You’re forced to use credit to buy food. If you can’t meet your basic needs without resorting to credit, your financial situation is likely to only get worse.
• You’ve sought professional help without any viable solutions. Credit counseling can help to determine if you’re a good candidate for bankruptcy. It can be challenging to find a trustworthy credit counselor, so do you...