Saturday, March 9, 2013, AM | Leave Comment
We all know divorce has huge effects on each spouse emotional life, not to mention the kids’. More often than not, kids are the biggest losers especially when they are at teenage or younger. At that tender age, it could be a blow to their self-esteem. Their studies will definitely suffer to say the least. They might need a shrink or something to keep moving on in their life.
However, most couples don’t realize that divorce can also be among the worst and ruinous financial moves anyone can make.
It has been said time and again that if marriage costs a grand, divorce will cost hundred grand. You will lose every which way in divorce especially if it’s a messy one.
There are obvious financial costs if and when you go through divorce procedure. The big financial losses are the two major costs or more like culprits: legal bills and the sudden need for an additional residence.
These two costs affect far more people financially than anything else in a divorce.
“The risk that any marriage will end in divorce is about 45 percent. The chances fall to about 40 percent for first marriages and decline further for college-educated couples, people from intact families and couples who share the same religion,” says David Popenoe, a professor of sociology emeritus at Rutgers University.
It can be detrimental to any marriage if both spouses are big spenders. “Success in marriage is only partly attributable to compatibility. It’s about how you manage those financial differences and whether you have a style for doing so that is successful,” says Gregory A. Kuhlman, a New York City psychologist who runs marriage success training programs with his wife, Patricia Schell Kuhlman.
Divorce rate is less for some folks…
Think about what the professor found in his research. I repeat it one more time: Divorce declines for:
- College-educated couples,
- People from intact families and
- Couples who share the same religion.
Your Credit Score may suffer as a result of divorce
The credit score of one or both spouses might suffer at least a 100 points, especially the one who made less than the other and was a big spender.
For the financially weak spouse but big spender, it will be uphill battle to get your finances in order and improve your credit history.
Make compromises before it’s too late?
Does that mean your best bet to stay together till death do you part are the three things the good professor pointed out. Can you do something about it? Would you do something about it now before it’s too late?
Before you talk to your divorce lawyer after you have talked to your marriage counselor, I am sure, you would be wise to talk to a financial adviser.
Talk to the experts…
If you don’t have a financial adviser, then find a good Financial Adviser.
If you have some financial problems, you can find a good Credit Counselor.
If you have tax issues and concerns, find a good tax preparer.
In a Nutshell
Resolve your financial problems at the least before things go out of control. Think about your small children. Don’t make them suffer at their tender age.