Posts Tagged ‘finances’

How Do I Get A Divorce If I Cannot Afford One?

Monday, August 6th, 2018

There are many common reasons why one of the spouses in a marriage cannot afford a divorce. By “afford a divorce”, I am speaking primarily about being able to afford to retain legal counsel. The reasons for this can vary, from the fact that their spouse is the one that controls the finances, or perhaps they kept their finances separate, and one of the spouses is not in a place financially to hire a lawyer. In any event, there are other ways for someone to get a divorce attorney besides the traditional route of just hiring and paying one.

If your spouse controls both of your finances, you can approach this several ways. One way is to try and see if you can find an attorney that will provide a free consultation, so that at least you are taking one step in the right direction. Some may even be willing to take your case on, and work out a plan on how they will get compensated at a later time. In addition, the court may grant your request for your monied spouse to pay your legal fees.

Another option is an uncontested divorce, which is simple and quick because it does not involve a long, drawn out divorce process. There is one other option, although it is highly unadvised, which is to represent yourself in the divorce, meaning you will be your own attorney. But in the case of not being able to afford most attorney fees, see if you can obtain pro bono, or legal representation without charge.

How Can I Protect Myself If My Spouse Takes Out A Loan In The Divorce?

Monday, August 6th, 2018

Many people who are preparing for divorce get anxious when they begin to think about incurred debt, both their spouses and their own, and if they will be responsible for paying this debt off once they are separated from their spouse. When it comes to debt incurred during marriage, the truth is that it all depends on a few things, mainly who’s name is the debt in, what your state’s laws are, and what kind of debt it is (credit card debt, mortgage, auto, etc).

If your name is on a loan, either as a borrower or a co-signer, you will be held completely responsible for the paying back of this debt. The lender of the initial loan does not care about the circumstances of the borrower – their main priority is to receive money to the fulfillment of the debt (they may not ever even become aware that you got divorced!). The longer this goes unpaid, the more your credit score will suffer, and when you are just getting out of a marriage, and your finances are still a bit in a state of flux, the last thing you want is a mounting debt and a suffering credit score – especially as you look for a new home. So merely by being a co-signer, even if the “debt” is not explicitly on you, the loan and payment of it are applicable to you. A good option here is to try to get your name off the loan, either by refinancing or, if possible, having your name removed entirely. But if that doesn’t work, it is best to have it paid off, and deal with being repaid later, when your credit score isn’t taking a major hit.

In the state of New York, a “common law” state, spouses are only responsible for debts explicitly in their name, which allows one to be very mindful and careful when deciding on entering into a joint account with their spouse. Moreover, a prenuptial agreement can outline something similar, in that it can explicitly detail how finances, and debts, are to be divvied up in the case of a divorce.