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Divorce and Bankruptcy

Divorce and Bankruptcy

Finances and debt can get very messy during a divorce. Money is the number one stress factor in many relationships. A recent study of 4500 couples has shown that there is a very strong link between financial disagreements and divorce. Of all factors that can contribute to a divorce, money is by far the most powerful. Couples that argue over finances tend to argue more longer and more intensely, resort to harsher language, and remember the bitterness and resentment much longer, and these sort of arguments tend to dramatically reduce relationship satisfaction and increase stress on the couple and any children they may have. While this trend is true across all income levels, the risk of money arguments increases as finances dwindle, and the anger and frustration of financial arguments can become even more intense when a couple is facing bankruptcy. To further complicate matters, the anger and stress of this kind of argument makes couples less likely to collaborate on financial planning and more likely to focus on the short term instead of trying to secure their future, perpetuating a vicious cycle of money trouble, stress, and intense argument, causing the marriage to fall apart under the strain. Income, Marriage, and Bankruptcy Qualifications Both spouses are responsible for the debts incurred during the time of the marriage. Your divorce settlement will divide up the debts, assigning responsibility for some to one spouse and some to the other. But that divorce settlement is between you and your ex-spouse; it doesn’t bind the creditor, who can collect the debt from either one of you.  If your ex files for bankruptcy after the...