If you don’t want to go to a professional, you can work to get a handle on financial issues by listing your income, assets, and expenses. (See below for a worksheet to help you.) Then you will know if your current income is adequate, or if you must strive to earn more. Notice that we haven’t mentioned putting more debt on your credit card. Adding debt will ultimately lead you into a quagmire. It is better to cut back on unnecessary expenses or increase your income. Carmen Carrozza, a former bank manager in Chappaqua, New York, has seen many people in the midst of divorce come through the door. The most uncertain are often women whose spouses have been the sole providers while they have been caring for the children. Even though these women worked for a few years before having children, they have been out of the workforce for too long to reenter at the same level, or the work they used to do has changed dramatically.
Looking for Work
If you haven’t worked for a number of years, getting back into the workforce will take some time and getting used to. But it can ultimately reward you with far more than financial security. You will begin to feel self-reliant. You will meet new people. And you might even find you are distracted from the problems related to your divorce. Discover the person you have not yet become. You probably have more resources and talent than you give yourself credit for. To help you identify your natural aptitude, we suggest you list your special interests and abilities in detail. Use the list to help you focus your studies, your job search, and your goals.
Developing a Credit History
According to Carmen Carrozza, one of the most common concerns for those in the midst of divorce involves building personal credit. The task is far easier, of course, for people who can show they have assets or income, by way of steady support or employment. Good credit is vital. These days, it seems, we can hardly exist in America unless we pull out a credit card to pay the tab. If you have been working all along, your credit rating will not be affected by your divorce, unless you and your spouse had joint accounts and failed to pay those bills on time, or if you stopped paying them after the divorce was filed. If you have been relying on your spouse’s income, on the other hand, you will have to establish your own credit history. Although the prospect seems intimidating, it’s not as formidable as it sounds. First, you must be able to identify your assets, like cash accounts, and your sources of income, including salary, interest, and, of course, maintenance (alimony). Because banks are seeking good credit risks, they will be looking not just at your income, but also at debts, credit history, collateral, and stability (how long you’ve been living in the same place). There’s a formula to this, and it’s not mysterious: If your income-to-debt ratio is 30 to 40 percent (you use no more than 30 or 40 percent of your income to your pay mortgage, car loans, and the like), banks will generally consider issuing you a credit card. If you don’t have a viable personal credit history, you can start to build one by shopping at stores that give instant credit; department stores, gas stations, and local stores are all good candidates. Begin by making small purchases on credit, and pay your bills promptly. Then, get a Visa or MasterCard. Pay your debts on these cards right away, too. If you’ve done things right, you should have your own positive credit history in about a year.
