Can You Borrow Money When Your Divorce Case Is Pending?

Recently divorced people make up a disproportionate share of the applicants for chapter 7 and chapter 13 bankruptcy. It isn’t because they splurged on a divorce party, a new wardrobe and cosmetic surgery for their glow up makeover, subscriptions to dating websites, and alcohol to take their minds off their loneliness. Rather, recently divorced bankruptcy applicants usually find their way to bankruptcy court because the divorce court assigned them what the court determined was a fair share of the marital debts, or a debt amount on which the parties agreed during divorce mediation, and the bankruptcy applicant could not keep up with the debt payments on a single income. It usually takes until after your divorce becomes final to assess your financial situation; you settle into a new normal without your ex-spouse’s excessive spending or, conversely, without your ex constantly complaining that you are spending too much. While your divorce case is pending, though, it is almost inevitable that you will feel that your finances are in dismal shape. If your finances have gone from bad to worse since you filed for divorce, and your divorce is not final yet, contact a Boca Raton divorce lawyer.

Frugal Man Faces Financial Dilemma During Pending Divorce

Personal finance expert Dave Ramsey recently received a call on his podcast from a man named Nathan, who was in a financial pickle in the middle of his divorce. Nathan prides himself on his frugality, and during his marriage, he managed to stay debt-free, and he and his wife accumulated a savings balance of $50,000. Ask any frugal person the secret to their financial wellbeing, and all of them will mention that they never buy a new car until the old one is so old that maintaining it costs more than replacing it. Problems never occur one at a time, so after Nathan and his wife filed for divorce, his car crossed the point of no return. Its resale value was only $2,000, and it would cost more than that to fix it. Nathan’s estranged wife told him that he should finance the purchase of another car, but Nathan did not want to do this; after working so hard to pay off his debts and keep money in savings, he did not want to take on more debt.

Dave told Nathan that his mistake was being too chivalrous in his divorce. Nathan was trying to finalize his divorce with as little emotional and financial pain as possible. Dave said that Nathan’s lawyers should fight harder for his wife to agree to let him keep part of the savings balance, and he should use some of that money to buy another car.

Contact Schwartz | White About Divorce for the Unimpeachably Frugal

A South Florida family law attorney can help you if you are so frugal that your spouse eventually got tired of your penny-pinching ways, and now you are struggling financially, despite your best efforts.  Contact Schwartz | White in Boca Raton, Florida about your case.

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