What About Additional Debt?
Divorce Preparation: Step 9 – Avoid additional debt or major purchases
We continue our series on practical steps to take when you are about to face divorce. We are now to step 9 which is simple, but important:
Avoid additional debt or major purchases
This suggestion goes hand in hand with assessing how to handle the credit accounts, but deserves its own separate mention. If a divorce is going to happen, you want to be conservative with the finances. It is not time to be putting in a pool, buying a new car, or buying new furniture on credit. You want to simplify the financial situation not make it more complex.
When the divorce occurs, one of the primary things that has to happen is for the divorce court to allocate who will be responsible for what debts. Generally speaking, the less complex the debt situation, the easier task that will be.
I should note again, all of this is general information. Your own specific situation may cause you to need to vary from it. For example, there are times when you may have to get an automobile and it would be better to do it before the divorce because you won’t have sufficient credit on your own after the divorce. So, obviously you will want to get specific advice from your own lawyer – which is why Step 1 was find a wise guide (an experienced, competent divorce law specialist)!