A third of divorced couples say money woes were a “primary factor” in the breakup of their marriages, but nearly two thirds took on debt after their divorces were final.
Those results – from a new survey by Debt.com and DivorceMag.com – were consistent across all income groups and all age brackets. More than half of respondents reported debts over $5,000. Almost 15% of those reported debts of more than $25,000.
“It doesn’t matter how much you earn; couples will fight about money. It doesn’t matter how much you have, divorce will cost you money,” says Debt.com president Don Silvestri. “We already knew this from our years of helping Americans get out of debt, but those high numbers were a little surprising – and depressing.”
Also, remarkable was how divorce affects credit scores. Just over 32% of respondents said their credit scores dropped by more than 50 points – the most popular response. While another 13 percent saw a decrease of 50 points or less, fully 20% saw no change.
“Divorce can take such an emotional, mental, and financial toll that many people going through it don’t think about ancillary issues such as credit scores,” says Diana Shepherd (CDFA), Divorce Magazine‘s Co-Founder and Editorial Director. “Unfortunately, you really need a high score post-divorce – to secure a new place to live, new credit cards, or even a new vehicle. A low credit score can mean higher interest rates, which will sap even more of your limited financial resources.”
Respondents ranged in age from Gen Z (18-29 years old) to Baby Boomers (60-plus), with a nearly even split between genders and income levels ranging from under $10,000 to over $200,000.
Other results:
- Just over 40% shared a debt with their former spouse that’s now theirs alone. Most commonly, that’s a joint credit card that’s now in their name only.
- Just over 20% considered a legal separation instead of divorce to avoid taking on more debt.
SOURCE: Debt.com, 5769 W. Sunrise Blvd, Plantation, FL 33313