Why are so many former-spouses left in financial ruin in the years after their divorce? A divorce is a devastating blow financially after couples deal with splitting their assets, selling off items that they have grown to value, and handling the long-term organizational finances in regards to child support and debt. It is an unfortunate truth that many people end up filing for bankruptcy following a divorce, or needing the services of the Tax Debt company to get out of their cycle.
Fun With Credit Scores
One of the biggest mistakes individuals make following their divorce is that they do not monitor their credit rating. What are some common things needed after divorce? Well a home is a good start. This requires a down payment of some sort. Even landlords look at the credit rating to get an idea of how reliable the tenant may be. Other things needed are furnishings for a new home, money to relocate, and possibly a new credit card to take on these new expenses. This is all intrinsically tied to a credit score, and many people lose sight of that after divorce. The IRS can actually destroy a credit rating.
Joint Account Pain
Other people face a problem to where their spouse refuses to pay in a joint accounts. The couple may have had a car together that was not completely finalized after the divorce, thus making one former spouse vulnerable to the others non-payment. These are all things that destroy credit and really make relief hard to obtain. As well, income tax debt has to be repaid even if the divorce is already occurred. The IRS is especially persistent in this area, so they are usually open to payment plans as long as they are reasonably paid and fair. The numbers will usually correlate with current income.
Yet Tax Debt relief can be found. A lawyer will collaborate with the IRS and explain the situation. One spouse may have been placed in vulnerable situation in the divorce, and they may reopen those claims. In a more likely matter, a tax lawyer can find special arrangements, especially with accounts that were joint signed.
Bring a credit report and any pertinent records to the office. This will help out some much-needed transparency and help pave the way for relieving future financially.
Visit Massbankruptcy.net for further details.