Avoiding Bankruptcy After Divorce

According to research, one in ten bankruptcy petitions involve bankruptcy. Divorce is a financial challenge, but it doesn’t have to lead to bankruptcy. With the help of a skilled lawyer, you can create the right legal and financial plan to prevent bankruptcy and protect your financial security and your future.

The Link Between Divorce and Bankruptcy

It’s no secret; divorce is expensive. However, divorce shouldn’t always mean bankruptcy. In many cases, couples are already facing a financial crisis when they decide to seek a divorce. In fact, experts say money-related issues are a contributing factor in many broken marriages.

Thus, some individuals are moving toward bankruptcy when they decide to seek a divorce.

Another element is financial dependence. In many marriages, one spouse is the primary breadwinner, especially if they have children. Without fair spousal and child support, the financially dependent spouse may be forced to file for bankruptcy.

How to Bulletproof Yourself

If you’re considering a divorce, remember this: your divorce agreement will have a lasting influence on your finances. Because of this, it is vital to creating a financial plan. If you are on speaking terms with your spouse, communicate your financial needs, debts, and assets to him/her.

Communication is imperative, especially when it comes to determining the right divorce settlement for your family. Make sure your spouse understands your needs and concerns even if he/she is not willing to accommodate them.

In addition to communicating with your spouse, contact your attorney. Even if your spouse disagrees with your financial proposal, your attorney can fight for your best interests.

Tips for creating an effective financial plan during divorce:

• Gather important financial documents, including bank statements, credit card statements, etc.
• Talk to a financial counselor. A professional financial planner can help you understand your needs and circumstances.
• Be wary of hidden assets and money. If you suspect that your ex-spouse is concealing funds, immediately talk to your lawyer.

The First Step Is Contacting an Attorney

Are you facing a divorce? Take the first step toward a better future by contacting a divorce lawyer from Modern Family Law today. We are a family law firm that not only cares about getting you the right divorce settlement but cares about your financial well-being and your future.