Loading ...Divorcing Money Troubles
There are a few steps that a divorcing couple can take to help ensure that they don’t descend into Jon and Kate style money madness. Much like their approach to parenting, the Gosselins seems to enjoy ticking off all the “don’ts” on the marriage money management list.
Creditcards.com has 10 steps to follow to help keep the money matters civil with your spouse. Perhaps it couldn’t hurt for Jon and Kate to try some of these out.
1. Don’t blow a windfall
The Gosselins earned an estimated $2.25 milllion from their TLC network TV program, not counting proceeds from book sales, appearances and endorsements. However, like so many instant millionaires, they (Jon, perhaps, in particular) may be mismanaging their wealth. After announcing their divorce plans, he went on a spending spree; allegedly dropping $950 on a pair of shoes, leasing a $5,000 per month Manhattan apartment, buying luxury cars and taking lavish vacations. Yet with eight kids to support, necessisities can exhaust even a large net worth.
If you’re lucky enough to come into prosperity or get a job that pays far above the norm, continue to spend sensibly. Rather than take a perpetual paycheck for granted, assume your past earnings will need to stretch deep into the future. Heed this advice more during separation, as overspending accusations can become fodder for costly legal battles.
2. Don’t take your eyes off the cards
Kate was recently witnessed trying to pay for gas with a credit card, which was declined in front of frenzied paparazzi. What happened? Presuming it was a joint account, someone likely forgot to pay the bill, the balance was at or over the limit or the credit line was suspended. Another possibility, says Andy Jolls, founder of The VideoCreditScore.com, is if she and Jon were charging at multiple service stations in quick succession, the creditor suspected something was wrong, triggered a fraud alert and froze the card.
Whether or not you’re in the limelight, having plastic returned in this way can leave you red-faced and in a bind. Especially if you’re a joint cardholder, check the balance, payment history, and account status before charging.
3. Don’t overlook your budget
Minding money affairs must be rough with a television show, media appearances, affairs, and a brood of small children. Undoubtedly the Gosselins live convoluted lives, but throughout all this, they also needed to carefully and regularly supervise their budget. Their personal chaos interrupted this crucial task: Kate claimed she has just $1,000 in cash and can’t pay the bills.
Know how much you need for everyday expenses and plan for them. Disregard the basics at your peril, says Rob Jupille, president of RTJ Financial Management out of Santa Monica, Calif. “A short time of ignoring can result in long-term problems. We see credit card balances go up, missed payments, and increased interest rates. One late deposit can result in many bounced checks.”