Broome County Family Law Blog

A bankruptcy can stay on a credit report for up to 10 years. However, those who file in New York or elsewhere can start rebuilding their credit far sooner. According to a study from LendingTree, 65 percent of those who filed for bankruptcy had a credit score of 640 or higher two years after filing. The study looked at 1 million LendingTree users who had received loan offers in 2017.

One of the most effective steps a person can take to rebuild credit after bankruptcy is to obtain a secured credit card. With a secured card, the credit limit is determined by the amount of the security deposit a cardholder puts down. This card can then be used to charge small items such as a recurring Netflix account or similar subscription that is easy to pay off. Ideally, an individual won't use more than 20 percent of his or her available credit in a given month.

Divorcing past the age of 50 can have a major impact on the economic well-being of spouses in New York and across the country. While the financial impacts of divorce can outstrip the emotional concerns for people facing the end of a marriage at any stage of life, these issues can be exacerbated among couples who make the decision to divorce later in life. This is particularly the case as the two spouses have significantly less time to stage a financial recovery from the expenses and asset division that accompany divorce. Retirement funds that were accumulated to provide for both spouses in one household will now need to be divided and support two separate lives and the mounting expenses that accompany them.

However, despite the concerns over the financial impact, an increasing number of older adults are deciding to divorce. In the past 20 years, the divorce rate among Americans over 50 has doubled, a trend that has continued to grow. The number is even higher for adults over 50 in their second or third marriages.

New York lovers headed for marriage may consider making contingency plans in case of divorce a bad omen, but the simple truth is that a substantial percentage of marriages end in divorce. Planning can limit acrimony and prove beneficial in ways unrelated to marital dissolution.

Pre-nuptial agreements are the first thing most people think of when pre-marital planning for divorce is mentioned. While both pre and post-nuptial agreements can be very beneficial to couples, they are not the only way to plan for difficult times. Maintaining separate assets and financial accounts can be very beneficial not just in divorce court, but can also protect a spouse from his or her partner's uncollected debts. Real estate can be particularly troublesome to disentangle if precautions are not made on the front end. For example, putting a spouse's name on a deed can result in a partnership with his or her heirs after an unexpected death unless proper estate planning is done. Paying for renovations from a joint account can result in property being later adjudicated as a joint asset.

Unfortunately, financial problems in your marriage may be leading to a divorce. Money problems and marital difficulties often go hand in hand. If your financial calamity is causing your marriage to end, you may be wondering about the logistics of filing for bankruptcy along with divorce. 

The truth is that divorcing will likely not make your financial issues go away. In fact, splitting up and living on your own will likely make you struggle more with your finances. Things may go more smoothly for you if you declare bankruptcy before the divorce. Here is why.