The end of a marriage brings forth many responsibilities and concerns for Ohio residents. In addition to dealing with divorce proceedings, both spouses might need to address personal finances. Not everyone’s finances are in perfect shape. Divorcing spouses could also struggle through a challenging debt situation. Hopefully, taking deliberate steps might alleviate some of these troubles.
Dealing with debt and divorce
“Auditing” debt allows a spouse to figure out what he or she owes. Some debt applies to both spouses, and other obligations may be in one spouse’s name. Divorce proceedings could address who pays what and how much. Knowing how much debt there is represents a viable starting place to understand how much everyone owes. Without a clear idea about the amount, managing debt may prove difficult.
Tax obligations reflect another form of debt. Are all tax returns filed with the IRS? If not, then getting current with filings and paying off the taxes may need to be a top priority.
The next step could entail establishing a new budget for necessities. Accepting dramatic life changes becomes necessary for those going through a divorce might help things. Becoming the only person living in a family home or moving into an apartment brings forth expenses shouldered by one person. Setting an appropriate budget for the new living arrangements may help cut down on spending and, possibly, free some money to pay down debt.
Additional financial concerns for divorcing couples
Not amassing any more debt might prove essential to future fiscal health. Cutting back on unnecessary spending, maximizing earnings, and sticking to a new budget could help. And then there may be other financial concerns to address.
Insurance helps keep people from suffering calamitous financial losses. Health, auto, homeowner, renter, and even commercial insurance policies may require reworking. Divorcing spouses worried about debt may benefit from making sure all vital policies are in effect.
If debt figures climb too high, negotiating settlements might become an option. Some could discover filing for bankruptcy protection seems the only viable route.
Divorce and debt relief sometimes must go together. An attorney might help clients who are in this position and address their debt-related questions and concerns.