Divorce is always difficult. Sometimes divorce can be financially challenging as well, especially when it takes place in the middle of a recession. You or your spouse may be unemployed and accruing debt at an alarming pace. Perhaps you will be forced to sell your home at a loss or may even go into foreclosure. The value of your retirement accounts might have gone down significantly.

Even one of these scenarios can cause a very stressful financial situation during divorce. If your divorce is acrimonious, you will need to figure more legal costs into the mix as well.

Given all of these financial concerns, there are many important things to consider when you and your spouse decide to separate.

In order to avoid conflicts of interest, it is advisable that you and your spouse have your own attorneys to represent your personal interests. Although do-it-yourself divorce kits are available, they may not cover all the bases that you and your spouse need to consider. Even if you and your spouse agree on everything, you still should have your paperwork reviewed to avoid any oversights.

If you and your spouse disagree as to how to divide assets, you might consider consulting a professional so you reach a compromise. In order to protect your credit, be sure to close any joint credit card or bank accounts and open new accounts in your name only. Also be sure to check your credit report before, during and after your divorce so you are aware of your accounts and any outstanding debt.

If you take steps to protect yourself financially, your divorce can be a little less difficult. 

Source: NJ Today "The Financial Challenges of Divorce" 8/31/10