While divorce can be an exciting fresh start, it’s also a big change both personally and financially. For some divorcees, these changes can be overwhelming.
New financial circumstances and spending habits can be difficult to get used to, and many divorcees end up in debt. Here are some of the more common causes of financial difficulties post-divorce.
1. The cost of divorce itself
Divorce can be an expensive process, even if it is amicable. The average divorcee will end up paying around $11,000 in attorney fees alone. If the divorce is complex and contested, the total cost can soon spiral into tens if not hundreds of thousands of dollars. This can leave a mark on a divorcee as they begin their new life.
2. Housing situations
Depending on what happened during the property division process, one divorcee may find themselves needing to purchase or rent a new home. Purchasing a home requires a downpayment, and this can be tens of thousands of dollars. Even when a divorcee opts to rent, they may need to put down a security deposit and furnish the rental property.
Once a new home has been acquired, it costs money to maintain and upkeep. Monthly rent, mortgage payments and other bills can all be overwhelming for a divorcee who has potentially gone from two incomes to one.
If you’re struggling financially post-divorce, help is available. It’s important to take proactive steps to prevent debts from spiraling out of control. One thing you may be considering is bankruptcy. This is a big move to make, and it’s important to have as much legal information behind you as possible before moving forward.
