Why do so many people who get divorced fall into financial trouble?
Divorce is tough enough as it is for emotional reasons, but on top of that many people who go through divorce also have to deal with the emotional stress of added financial difficulties and worries. Divorce is an expensive process and brings a host of other financial difficulties such as legal fees, alimony, child support, a weak property settlement agreement, lifestyle, hanging onto the family home, credit card debt, etc.
Financial Difficulties Caused by Divorce
If you’re considering divorce or are already going through a divorce, then you probably already know that you can expect to pay alimony. And, depending on whether or not you share custody of your children, you know that you can also expect some child support obligations, too. But, the financial burdens that arise with a divorce are much more burdensome than just those two financial obligations alone.
You’ll have your legal fees, which are hefty, but having a weak property settlement agreement, also known as a marital settlement agreement, is literally the blueprint of your post-divorce financial world. This blueprint includes agreements with the house, assets, investments, alimony, child support, etc.
A weak property settlement agreement is a contract that fails to include potential pitfalls that may lie ahead. For example, changes in financial circumstances. These financial circumstances often include a change in income, or maybe even a change in assets that had already been split.
Failure to change your lifestyle and your pre-divorce spending habits will often times have a negative impact on your finances, as well. Depending on your new financial obligations, you may have to make necessary changes to your present lifestyle, accepting that things have changed. Hanging on to the family home can also lead to financial hardships. Many people who share children, often times do this for the kids.
Failure to immediately separate finances can very quickly lead to financial headaches and burdens. Many people going through divorce and experience financial difficulty end up going into survival mode and have to rely on credit cards. You and your ex are equally financially liable for any debt incurred to joint accounts during and after the divorce.
Bankruptcy Could Be the Answer to a Financially Difficult Divorce
Yes, bankruptcy may be the answer and solution if you’ve recently gone through a financially difficult divorce or if you are in the middle of proceedings. When it rains, it pours. But remember, you can’t have a rainbow without a little rain. Your bright future is right around the corner.
Going through a divorce, as hard as it may seem in the moment, is not the end of the world. The same goes for filing bankruptcy. It may feel like you’ve hit rock bottom, but bankruptcy will get you through this and have you standing on your own two feet in a relatively short period of time. Filing for bankruptcy is the solution to long-term tax-free debt elimination and credit recovery and repair.
Filing for bankruptcy immediately and completely eliminates all of your debt, allowing you the ability to begin rebuilding your credit instantly. You can expect to see major improvement with your credit within just 18-30 months after bankruptcy. Rebuilding credit following bankruptcy is much quicker and easier as opposed to many debt consolidation solutions.
To learn more about how filing for bankruptcy can save you from financial debt incurred during and after a divorce, contact an experienced bankruptcy attorney today.
