Regaining financial independence after divorce

Divorce statistics in the United States are staggering.  In fact, the Centers for Disease Control and Prevention released a report in 2011 that indicated that marriage rates were 6.8 per 1,000 people and divorce rates were a staggering 3.6 per 1,000. This data was based on results from 44 states and the District of Columbia.

When you consider the emotional impact of divorce, it is not any small wonder that finances are not always at the top of the couples list until the very last minute. Once the divorce papers are signed, both men and women may find that they are having trouble regaining financial independence after divorce. Let us explore some of the financial challenges and some possible solutions.

• Mortgage/Rent - Unless you sold a home and garnered a profit from that sale as a condition of a divorce, chances are that you have debt from a mortgage.  At a minimum, you will have monthly rent payments.  What once was easy to pay in a two income home suddenly becomes an overwhelming challenge.  Before you panic or ignore a potentially devastating financial setback, you should begin exploring your options. If you are paying a mortgage on a home, it may be time to consider some options if you feel that you will be unable to make your mortgage payments.  These options include (a) selling your home or (b) renting one or more rooms out. Either of these methods can help you regain your financial independence after divorce. If neither of these options are feasible, you may have to consider a part time job to make up the shortfall.
• Credit Cards - Chances are very high that both the spouses in a divorce have taken on part of the credit card debts that were incurred during the marriage.  The best you can do with credit card debt is pay it off as quickly as possible.  If you believe you cannot make more than your minimum monthly payments, you may want to explore debt consolidation loans that will pay off all of your credit cards and have one monthly payment to deal with. Chances are this single monthly payment will be less than the combined minimum payments. This is another positive step towards regaining your financial independence after divorce.

Typically these are the two main debts that are going to create major financial issues for you after a divorce.  It is important that you sit down as quickly as possible and create an action plan that includes a list of your debts and your income. If your income is insufficient to maintain your current debt levels you will have to explore ways to increase your income.  This may mean asking for a raise, looking for a higher paying job or learning to earn money online in your spare time. It may also involve getting a second job.  None of these options is appealing for many, however they will be necessary if you are working towards regaining your financial independence after divorce.