Financial Mistakes to Avoid Following a Divorce in Florida
Going through a divorce can be a difficult, emotional and costly process; one which a married couple does not anticipate going through when they are first married. However, even though the divorce rate has dipped according to the U.S. Census Bureau, people are still getting divorced more often than in the past.
Many factors must be considered during the divorce process. These include alimony, child support, custody or visitation rights, as well as property division. While an experienced family law attorney can assist with these topics during the divorce process, ex-spouses must be very careful not to make costly financial mistakes once the divorce is finalized.
Post-Divorce Financial Blunders
Many individuals struggle budgeting after a couple’s assets have been divided either by the court or according to a prenuptial agreement.
According to Fox News, for example, many people fail to close jointly held credit cards or other debt accounts. As a result, creditors conduct business under the assumption that both exes are responsible for the debt. This holds true even when a couple specifies who is responsible for particular accounts in their divorce decree.
Additionally, some spouses use debt as revenge for a martial betrayal and charge significant amounts on their ex-spouses accounts. Others anticipate this happening and close their accounts to open new ones. This is also a financial blunder because such actions can lower a person’s credit score, which limits the amount of credit they are eligible for in the future.
Next, many exes rely heavily on their spouse to support them financially during a marriage. After a divorce, people often have less liquidity and less available cash for food, clothing, rent and gas, as well as the luxuries they had become accustomed to. Divorcees must carefully budget and live a lifestyle appropriate for their current cash flow, rather than maintain the same quality of life they had during their marriage.
Finally, people must be cautious when entering into a new relationship. Too often formerly married people splurge on their new boyfriends or girlfriends even when they cannot afford it. Just because someone has regrets stemming from a past marriage, or wants to forget the marriage entirely, it is no reason to make life changing financial mistakes after divorce.
Seek Professional Advice
Setting and sticking to a budget is difficult and takes discipline. Divorced individuals should know that they do not have to go through this alone. An experienced divorce attorney can help people plan their futures in addition to guiding them through the divorce process. Someone contemplating a divorce, or wondering how a divorce may impact their lives, should speak with an attorney immediately.