Credit and Utah Divorce

I was recently interviewed on impactmakersradio.com. The subject of the interview was: “Getting your financial house in order during divorce.”

We talked about budgeting for those going through divorce, and its importance for being successful both during and after divorce.

You can listen to the entire interview here.

At one point during the conversation, the host gave me a situation like this and asked me to address it:

Imagine a wife who’s been at home for 20 years. She has no credit and probably little income. What type of pitfalls should she be aware of?

It’s a great question because it’s a situation that’s all too common.

Budgeting

I answered the question by first addressing what this wife and mother should do. That advice went something like this:

  1. Figure out every cent of income from every source that her family gets every month.
  1. Figure out every cent her family pays out every month (i.e., every expense).
  1. By doing (2), she’ll figure out every debt her family has.

A debt is anything you make a payment on to pay it off. Examples of debts are: homes you are paying a mortgage on (even if it has positive equity), cars, timeshares, credit cards, etc.

  1. Figure out every asset her family has.

An asset is anything you own that you own outright and aren’t making a payment on.

  1. Make a bare-bones budget.

This budget doesn’t reflect what you normally live on during the marriage (in other words it doesn’t reflect your standard of living during the marriage). Instead, this budget is a “what is the least amount of money I can get by on” budget. By doing this, you know exactly what you and your family need to survive, and anything else you get is “extra” you can use for investments, etc.

Credit

The second aspect of the host’s question I addressed was credit, and this is what I wanted to expand on.

Let me start by saying I am not a fan of credit (i.e., debt) in general. I think it, for the most part, allows people to live beyond their means, make poor decisions, and then pay for them for years. It increases stress levels and has contributed to more marital breakups that I can count. It’s bad news.

With that in mind, I think the priority of anyone going through a divorce should be (1) to not use debt if possible, and (2) to get out of debt as quickly as possible.

I don’t really worry about things like credit scores much because I want people to focus on never using their credit score. I want them to pay off credit cards, lines of credit, mortgages, and all of these other things that have caused them so much pain and stress over the years.

Focus on getting unshackled, not on improving a score that will allow you to get more shackled.

Create a plan to get out of debt. Do it today. Start on that plan right now.

Conclusion

Please, put together a monthly budget. Implement a plan to get out of debt and do it, even during your divorce. You and your family will change so much once your debt free.

You’ll have better relationships with your kids. You’ll have less stress. You’ll have more money in your pocket, and you be able to save to help your kids succeed.

You and your family will love the freedom a debt-free life brings.

Protect Your Money And Your Family

We remove fear associated with divorce, protect your money & maximize time with your kids!

We're here to help. Let's determine your best options.

Call Us 24//7 at 801-685-9999 to Speak with a Live Representative

Utah Divorce FAQs
Top 100 Divorce Blog
What Clients Are Saying…
Brown Family Law
Excellent
4.9
Based on 803 reviews
They handled my case with the highest degree of professionalism and integrity and made every effort to be efficient and transparent with me throughout the whole process. I was told that they were the best as far as family law is concerned and I believe that praise was fully justified.
Amber McFee is always professional and great to work with. Being opposing counsel by nature is adversarial, but Amber is professional in approach while effectively advocating for her clients. She will treat you right!
Response from the owner: Thank you, Jonathan.
Overall from start to finish the best experience to have dealing with a time that is difficult.Andrew Christensen is very professional and out going to make this situation the best it could be and worked hard to make sure the divorce was fair for me.Over all, this firm really cares and treats you as a family or friend and just not a client, down to Marco Brown taking time to see how I was doing and offer to help in any way possible during my divorce while I was there for my first initial meeting.I would highly recommend anyone that has to go through a divorce to really reach out to the Brown Family Law firm and see for your self the experience I was able to receive from a top notch law firm.
Response from the owner: Devin, thank you for the kind words. Andrew appreciated the opportunity to help you with your situation.
Sophie was very helpful and explains the process and fees. Thank you!
Response from the owner: Corey, thank you for the kind words. Glad we could help.
Dani always kept me updated and has great communication skills.
Response from the owner: Thank you, Sofia.
Dani was extremely helpful and always responsive.
Response from the owner: Glad Dani did well for you.
My experience with Brown Family Law is a positive one. I highly recommend them. This firm has very good communication with their clients. Attorney Paul Waldron represents me and I’m very happy with the experience. My questions and concerns are always answered quickly and respectfully. I’m grateful to have Mr. Waldron and Brown Family Law in my corner during this difficult time for my family.
Response from the owner: Jodie, glad we were able to communicate with you so effectively and quickly. Thank you for your kind words.
I recently used Clay in a divorce case and could not have been happier. He was efficient, knowledgeable, and made me feel like I was his only client. The process was easy and he was always there to reassure me or help me with decisions. I would highly recommend Brown Family Law.
Response from the owner: Thank you, Mendi.
Dani excelled as a paralegal, providing crucial support with exceptional skills!
Response from the owner: Glad Dani did such a good job for you.
Thank you So much
Response from the owner: You're welcome. Thank you for choosing us to help you.
js_loader

Categories

Related Posts