Divorcing couples often find that starting life anew as a single person brings serious financial challenges, including those related to the former marriage. A newly singled person can succeed by addressing the need for a budget that takes into account separation of debt, court-imposed expenses and rebuilding credit. North Carolina residents who have untied the knot should keep several things in mind.
Most importantly for the newly singled, the end of marriage often means a cut in income. Though there is less money to spend, people tend to hang onto their old possessions out of habit. However, the vehicle bought by the two-income couple may need to be sold in favor of a cheaper alternative. The money for annual club memberships may no longer be available in light of new expenses, such as child support. Though painful, making budgetary cuts will ultimately improve one’s financial outlook in the years to come.
Debt disclosure and negotiation can be a contentious matter during divorce proceedings. Once settled, there can still be negative fallout and terrible consequences. Former spouses will benefit from meticulously curating debt from the marriage and ensuring separation on all accounts, including credit cards and loans. Without this separation, a former partner’s bad decisions can still harm one’s credit and cause liability.
The potential for dissatisfaction in the wake of a divorce is generally related to the thoroughness of negotiations. Was every issue of importance decided upon? Did both parties receive full financial disclosure of the marriage? An attorney with experience handling divorce legal issues knows what to look for and may spot trouble areas before they become long-term problems. An experienced attorney might also bring in paraprofessionals when needed, such as for financial discovery in a high-asset divorce or evaluations during contentious child custody cases.