Debt takes priority over saving after divorce

If you are like many people in Tennessee, you may have experienced a period of financial stability and even growth in the last decade as the nation and the world emerged from the most recession economic downturn. Regardless of the state of the economy, however, when you get divorced, your financial situation can take a turn for the worse. This can be a very hard situation to adjust to, especially if you have not generally had to worry about your financial health before.

The realities that face many divorced people include the need to pay spousal support and child support while simultaneously needing to support one’s own life on an income much less than what they are accustomed to. This may be why a new survey from CNBC found that people who have been divorced commonly identify paying down debt to be a bigger priority than saving money. Divorced people were also more likely than their non-divorced counterparts to feel that they did not earn enough money to support themselves or pay for everything they needed to pay for.

The survey also noted that divorced people might feel embarrassed about their financial situation and, therefore, reticent to talk with anyone about their money challenges.

If you would like to learn more about how to approach your financial planning after your divorce is final so that you are set up for a positive future, please feel free to visit the divorced person’s guide to money management page of our Tennessee family law website.