Divorce can wreak havoc on a person’s finances, especially if it involves dealing with formerly shared assets, debts, and credit cards. As Candace Bahr, co-founder of the nonprofit Women’s Institute for Financial Education, puts it, “No matter how much money you get, you have half the income and half the assets you had previously,” because the income is now spread over two households instead of one.
Not surprisingly, divorce is one of the most common causes of bankruptcy. Here are strategies for keeping your finances solvent long after your marriage isn’t.
• Get your credit report. Examining your credit report for inaccuracies is especially important after a major life event, such as divorce, particularly if you will soon be taking out a new home or car loan. Errors on the report can lower your credit score and keep you from getting prime interest rates.