A divorce can impact your life in so many different ways, and one of the leading causes of divorce is money. Financial issues can put a large strain on a relationship, so many couples will end up filing for divorce because of this strain. If this is one of the reasons you are getting divorced, you might be in a position where you are considering bankruptcy. Bankruptcy and divorce often go hand-in-hand, and here are some things to consider if you are going through a divorce and are in a bad financial situation.
Divorce Splits One Household into Two
Your financial situation could actually become worse after your divorce, primarily because you are going from one household to two. Two households require two sets of bills instead of one, and it reduces income from two people earning money to just one. Going from sharing expenses and debts to paying them all yourself typically only makes a financial situation worse. This means that if you are currently experiencing major financial problems as a married couple, you might find that your financial situation gets even worse after you split up.
You Can File Bankruptcy Before or After
Because finances are such a huge problem with many couples who divorce, a couple may look into bankruptcy. The good news about bankruptcy is that you could use it as a married couple before the divorce is through, or you could use it afterward. Either way, you can file on your own if you want to, but if you wait to file until after the divorce, you would only be able to file alone. If you file while still married, you could file jointly.
There are pros and cons of filing jointly and individually, so you might want to talk to a lawyer to figure out which would be better for you in your situation.
Bankruptcy Would Give Instant Relief
The benefit of choosing bankruptcy, especially if you could use Chapter 7, is that you would instantly find relief from certain debts you have. While filing may impact your credit score in a negative way, it could impact your financial situation in so many positive ways. This could be exactly what you need to start your life as a single person in a good position.
If you think that bankruptcy might be a good solution to your financial problems during or after your divorce, meet with a bankruptcy lawyer to find out more about it.