Divorce does more than just turn two married people into single people, it also impacts the everyday lifestyle of all of the family members. If children are involved they will most likely find themselves splitting their time between two houses, and juggling activities with two families. In order to maintain two households, significant finances are needed. Because many families struggle to make ends meet when they all live under one roof, the struggle is amplified when the parents get divorced.
There are a few ways divorce impacts finances, and it is important to know how your bottom line might be affected if you get divorced. The most common consequences divorce has on the family budget include:
- One parent is usually made to pay child support, but can often times find this a difficult task now that there are two mortgages or two rent payments to make each month. This can result in children being unable to continue participation in costly after school activities and sports.
- In many instances the family home is sold during divorce, and each spouse finds more affordable housing on their own. This can help to free up monthly income, but only if adequate housing can be found or is available in your area.
- Spousal support is often a part of the divorce process, and is designed to allow a spouse who has given up a career in exchange for raising a family a chance to get back on their financial feet after divorce.
While bankruptcy will not allow for a party to wipe out their obligation to pay child or spousal support, it does allow for elimination of credit card and other debt. Depending on the type of bankruptcy you file, you may be able to have high interest rate unsecured debt forgiven, or at least a portion of this type of debt. When finances are put at risk due to divorce, it is worth taking a look at the benefits offered by bankruptcy. Call us for answers to your most important questions and concerns, and let us help you develop a plan that meets your financial needs.
For more information about bankruptcy and divorce, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.