Cleveland Man’s Divorce Puts Him in Financial Crisis; Dave Ramsey Responds
Divorce can be financially devastating and one Cleveland man, Corey, discovered this firsthand. On a recent episode of The Ramsey Show, Corey shared his financial woes with Dave Ramsey, seeking advice on how to handle the ongoing divorce and his ex-wife’s demands for him to take on more debt.
With $65,000 in combined credit card debt and a mortgage worth $132,000 on a house recently appraised at $174,000, Corey and his wife were already in a deep financial hole. On top of that, Corey’s car payments are a staggering $970 a month, which is also higher than the national average. Add that to the fact that he would owe money to the auto lender if he wanted to stop making monthly payments, and the situation looks dire for Corey.
On top of all this, Corey is facing the prospect of splitting his 401(k) retirement account with his ex-wife, leaving him in a precarious financial situation. Dave Ramsey acknowledged the severity of the situation, stating that “the problem with divorce is that it turns a marriage into a business transaction.”
Ramsey’s advice for Corey included negotiating for a 50-50 split of assets and debts with his soon-to-be ex-wife. His recommendations also included selling the house and getting rid of the expensive truck, which would allow Corey to walk away from the ordeal with only $35,000 in debt, an intact 401(k), and lower monthly payments.
The game plan presented by Ramsey should provide Corey with a stable financial situation that will allow him to move forward, start making money again, and pay down the remaining debt over time.
The financial challenges that Corey is facing are not unique to him. Many individuals going through a divorce are confronted with similar obstacles, and the advice given by Ramsey provides a potential path forward during these challenging times.