Debt after divorce

Financial problems and debt after divorce
For a substantial number of divorced men and women the difficulties they may have already encountered during the divorce process are compounded by financial problems of one kind or another.

Money troubles may well have contributed to the reasons for marital breakdown in the decision to split up in the first place and the expense of a lengthy and protracted divorce will only add to your woes. It is no coincidence that the number of divorce petitions rises dramatically after the Christmas/New Year period, coinciding with the hefty thump of the credit card bills landing on the mat in the hallway.

Divorce does not only involve sharing out the assets, it also shares out any debts. The division of what may have already been slender resources added to the costs incurred by the divorce proceedings can leave both parties suffering financially.

Include children and low earnings in the equation and debt after divorce is almost inevitable. Where there was once one family unit to support, now there is two, and half of not very much is even less.  Rescheduling debt may not be the best solution but in any event expert advice on your divorce finances could give you more information and so point out some options that you had previously not considered. 

For many with financial problems after divorce it is difficult to know where help can be found. Troubles of this nature can add further stress to an already problematical situation. Organisations such as Citizens Advice Bureau and UK Insolvency Helpline can point you in the right direction for dealing with debt, however it has been incurred.

The Debt Counsellers give free advice on all aspects of debt management. Also online for free help is the Debt Advice Bureau.

Beware
It can be all too easy to get sucked into adding to your post divorce debt by further borrowing what cannot feasibly be repaid. Be very wary of companies charging fees for their services when there is free, and professional, advice available from other quarters and any cash paid in fees would probably be put to better use as payment against some of what you owe.  

Debt consolidation after divorce
It may seem like a good idea to take out another loan to consolidate your debts but this could land you in even hotter water. If the loan is secured against your home it could mean that you may lose it if you do not keep up regular repayments.

You may still be liable for debts incurred when you were married. If you and your former spouse were both signatories to a loan or a credit card agreement you are jointly liable whether or not you are in the process of getting divorced or already divorced. If either of you defaults on repayment then creditors will pursue the other party.

Find an expert Divorce Solicitor: Contact  a local solicitor for a free, no obligation consultation
Sort out your Finances: Find an IFA in your area to help you with your Divorce Finances