Financial settlements can be challenging. Should you spend the money to get a larger share of the asset pool? Should you part ways each keeping what you have? Should you take on joint or your ex-spouse’s debt?
Depending on where you are in your divorce proceedings and how quickly you want your financials settled, you may consider taking on your ex-spouse’s debt for your mental and emotional sanity. While you may be financially challenged for taking on the debt and possibly struggle to repay the debt, you will gain your financial control. While taking on additional debt may not equate to the financial freedom you had hoped for, you will achieve financial independence from your ex-spouse.
Before considering taking on any debt or transferring loans, it is worthy of speaking with your local banker or finance broker as well as your accountant or financial planner. Be sure to only take on the debt that you can service/repay. You don’t want to be forced into declaring bankruptcy, experience longer term repercussions or experience any limitations that you had not expected or been prepared for.
Whether you take on your ex-spouse’s debt or receive a small (or sizable) settlement, it is important to have a frim understanding of your expenses/outgoings/costs and ensure that they are less than your income. If not, you will find yourself going “backwards” financially. Help is here! You can create your own budget using the Divorce Answered’s FREE Budget Tool. This is a resource made available to you which can help you calculate whether you are working towards the “red” or the “black”. You will be able to make adjustments to the figures depending on your spending or savings over time with the saved Budget Tool. Obviously, the main aim is to stay financially buoyant and make the money that you have work its hardest for you.
It can be really confusing knowing what is included and what you can expect in the financial split. Seeking professional advice is advised. However, you can get prepared and have a head-start. If you need some help preparing for your financial settlement and getting a clearer understanding of what is included, how it may be split and what this may mean for you, please book a Strategy Session and you will have some clarity with your financial situation.
As the saying goes “Hindsight is 20⁄20 vision”. Don’t live in the “would have…”, “could have…” or “should have…” Drop the regrets. Live in the moment. Sometimes accepting financial debt offers you financial independence, financial control and reinstates your sanity.