Often, those who are getting a divorce find that they also face the strain and stress of mounting bills and even extreme debt. This can make the whole process harder than it would be otherwise, and it can lead to debt issues that last for years.
Just take, for instance, the story of a man living in Edmonton. Together, he and his wife had good jobs and made six figures. In order to take some trips and then figure out where they wanted to live, they sold the home they owned and rented another one. Everything seemed to be going fine until the man found out that his wife actually wanted to split up and get a divorce.
Debt started mounting quickly. With half of the previous income stream gone, the man felt like he didn’t have nearly enough money. He had tried to cut out some non-essential things, like cable TV, but it wasn’t enough. He couldn’t afford to buy groceries, so he started using his credit cards to cover things.
When the dust cleared, he found that he owed a total of $10,000. Keep in mind that this did not come from the divorce itself, but from all of the extra expenses. If that sounds bad enough, it should be noted that $10,000 is still under 50 percent of the average in Canada. Couples who are getting divorced often find themselves with even more debt than he had to deal with.
As you can see, the impacts of divorce stretch beyond the separation alone. Be sure that you know what legal options you have to get through this process quickly and with as little debt as possible.
Source: Huffington Post Canada, “How to Manage Divorce, Distress and Debt,” Jeffrey Schwartz, April 22, 2015