Increased debt following divorces

Getting divorced can have significant financial impacts for Arizona couples. In addition to having increased expenses because of going from two incomes to one, divorcees also might end up with extra debt and drops in their credit scores.

A recent poll from Moneywise.com and Debt.com that involved 800 divorcees sheds some light on the financial ramifications. Among the respondents, 40% reported that they had ended up with more than $5,000 in debt because of their divorces. Several studies have found that the average cost of ending a marriage ranges from $13,000 to $15,000. However, legal costs are not the source of all of the divorce debt that people might be left with. Household debts that are divided between the spouses are also a source of divorce debt.

Arizona is a community property state. This means that marital assets and liabilities are divided between the spouses, including their debts. This might result in some people being left to pay debts that a former spouse incurred. Those who get divorced may also have to take out new debt as they begin their new lives on their own. For 38% of the respondents, their credit scores dropped by up to 50 points because of their divorces.

Someone who wants to end their marriage should take proactive steps to protect their finances. An experienced divorce lawyer might advise their client about how to avoid adding debt. The individual may also want to gather all of their account statements and other financial documents before they file for divorce. With help from a lawyer, the individual could avoid making mistakes that will be financially harmful.