All too often, where there is divorce there are financial problems. Either the financial problems caused the divorce or the divorce caused the problems.
In fact, I would say that financial difficulties are probably among the top reasons couples file for divorce. It can be incredibly stressful to approach the end of every month not knowing if you’ll be able to pay rent or buy diapers for the baby. And sometimes, you just need to hit the reset button and start over.
And while I personally believe you should always make every effort to work through these problems, sometimes financial problems cause a divide between two people that can’t be mended.
So what do you do now?
It’s easy to imagine a scenario where two individuals have spent well beyond their means, racked up tens of thousands of dollars in credit cards, bought vehicles they can’t afford, bought a house that they can’t afford, lost a job, had a sudden illness, the list could go on forever. So if and when it becomes time to end the relationship it’s also time to split up the marital assets and also to split up the marital debt.
This is the point that bankruptcy can often times find its way into a divorce. But when do you file? Do you file jointly? Individually? Does the divorce need to be contested? Can we settle the divorce and the debt issues?
The answer is, “It depends.” This question is extremely complex and requires sitting down with us our law firm to discuss every asset and debt you currently have. For instance, who owns the vehicle, whose name is on the credit cards? Everything matters and the choices you make will affect you for years to come.
If you feel that this applies to you, contact our office to set up a free consultation to find out the right path for you and your spouse.