Divorce Can Equal Financial Cutthroat

None of us expect or prepare for divorce on our day of wedding bliss. Even as divorce rates climb, most of us truly believe that we will avoid that sad fate. The reality though is that 40% of us will get divorced at least once in our lives.In addition to all the financial upheaval this causes in a couple's life, the divorce fees themselves have skyrocketed.

Through some careful planning and cooperation, which can admittedly be difficult during these processes, both parties can end up saving themselves a lot of time, money and headaches.The thing most squabbled over is without a doubt personal assets. While some articles may be rather cut and dry, for instance something that was in the possession of one of the parties well before the marriage, other things, especially items acquired as a couple will cause severe headaches.

This process is of course made worse by the fact that you may not necessarily be strongly averse to giving up an item, it's the fact of who you're giving that item up to. As difficult as this process is, it's in both your interests to work it out as quickly and cleanly as possible. This does of course require some degree of cooperation from both parties, as there's only so much one person can do.

To build on this, it's important to remember that with the fees associated with court cases, the items and points of contention are often of less value than what it will ultimately cost you to contend them if not done so prudently. Having a third party who can act in an impartial manner to help sort out your differences can be a great way to work through the process outside of the courts.

As long as both parties agree to abide by the decision of the third party, this is a great option. Also, rather than arguing over who gets what, it's probably better just to sell everything that can reasonably be sold and split the money. While items that have some emotional value to one or both parties may have to be sold through this method, it's really the fairest way to ensure both parties are equally compensated.

Once this process is over you can begin to reassess where you stand financially and make appropriate lifestyle decisions to accommodate your new situation. In most cases you'll be experiencing a downgrade in lifestyle for at least a short time, and particularly if you weren't the primary income earner, or were earning no income at all. You will likely have an amount of cash from the settlement to get you by for a time, but finding a steady source of income again will be your utmost concern.

You'll also be on your own again when it comes to credit, so your credit rating will play a large role in determining your options. Any credit developed through a joint account will not serve you now, your have to learn how to understand a credit report again and you may also have additional debt from the divorce on your hands which could hurt your personal rating. Getting your personal credit score into a good position may be a contributing factor in how well you can cope directly after the divorce.

One of those little bonuses of divorce is that your lifestyle and spending choices are back in your hands, and completely determined by you. You no longer have to contend with a partner who was frivolously spending money from your joint account or on the other hand, being too frugal with it. Accurately determining where you're at and adjusting quickly will ensure you recover from the divorce as soon as possible, and put the whole affair behind you for good.

About the Author:
Learn more of what Caden Flynn has to share over at http://www.debtjerk.com. The time has come to erase any doubts you may hold on the subject of how to read a credit report.