One of the top reasons couples give for getting a divorce, even in a good economy, is arguing and disagreements over financial issues. During a downturn in the economy, when people are losing their jobs and prices for everything from paper towels to real estate are skyrocketing, financial issues become even more stressful.
At Springer & Lyle, we have some suggestions for couples who are on the edge of divorce or are already in the process of dissolving their marriage.
Assess Your Financial Situation
You and your spouse must conduct a thorough and honest assessment of your current financial situation. For example, consider the following:
- Equity in your home and other real estate. At this moment, there may be an inflated value of the equity in your home. The economy is in a rocky place. The booming real estate market that has recently increased the value of homes may be in for a fall. Try to account for both scenarios: A windfall or a crash.
- Value of investment accounts. This raises the same issues as with the amount of equity in your home.
- Credit card debt. This can be a big area of stress. It may be that one partner has racked up extensive credit card debt while the other party stresses and fumes about how overextended the finances are. Be honest with each other and do not hold anything back because you don’t want your spouse to know about it. This will only make matters worse.
- Overextending the budget. This often happens because the spouses are not on the same page about budgeting and spending. One party may have grown up where there was no limit on spending and the other one grew up pinching every penny. It is difficult to merge these two financial approaches. On the other hand, a couple can mutually overextend by buying their dream home without regard to their budget, only to later regret the purchase.
After you have done this assessment, make realistic budgets for you both as you move forward into your single lives.
Contact us at Springer & Lyle for Assistance
Our family law attorneys at Springer & Lyle are sympathetic to the family dynamics that can’t be ignored in a family law case. Our family law attorneys have the experience and the to help you through the divorce process during this difficult uncertain economy. Contact Daniel Abasolo at 940-387-0404 to schedule a consultation.