Using The Law To Make Your Life Better

3 reasons why your divorce may lead you to bankruptcy

David Sexton

A divorce can have a ripple effect throughout other aspects of your life, especially your finances. According to research from the Center for Economic Studies, people who get a divorce are more likely to file for bankruptcy

Ending your marriage can be expensive. If you are struggling to make ends meet after your marriage has ended, you may have a lot of concerns. Here are some reasons why you may need to file bankruptcy after divorce: 

1. Dividing assets

Splitting your property and money is a necessary step in the divorce process. While the division of assets is supposed to be fair, sometimes it does not end up that way. If you give up significant assets in your divorce settlement, you may find yourself in an unstable situation. This is especially true if you split a significant portion of your retirement assets or business. 

2. Reduced income

Living on a single income can be difficult to manage. When your former spouse leaves the picture, his or her income goes, too. If you have to cover all the same bills without any extra income, you may need to resort to bankruptcy. You may face financial hardships even if you receive child support or alimony. On the other hand, if you are the one making support payments, you may not be able to make those payments without financial difficulty.

3. Legal fees

The process of leaving your spouse can be quite expensive. Court costs and attorney fees can add up, especially if your split is contentious and lengthy. This may leave you in a hard spot once all is said and done. 

It is an unfortunate reality that the breakup of your relationship can lead to unsurmountable money struggles. However, you do not need to feel scared or ashamed if you need to declare bankruptcy. It may be the solution that makes the most sense for your situation.

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