Divorce increases bankruptcies

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24-7 PRN - GHN Editor - While the rate of divorce has been increasing, the financial consequences for couples has been devastating enough that many have to seek bankruptcy.

Since 40 to 50 percent of all marriages end in divorce, according to the statistics, that is telling.  Furthermore financial problems are cited
as one of the principal factors in the dissolution of marriages.


The economy, unemployment rate and dip in the housing market  are factors contributing to the rise in bankruptcy filings in recent
years. In 2009, over one million people filed for bankruptcy and it is expected to be even worse this year. The American Bankruptcy Institute
predicts there will be more than 1.6 million personal bankruptcy filings by the end of 2010.


Though many couples cite financial difficulties as a reason to seek divorce, divorce  create financial stresses of its own.  If people are
not careful, they can make mistakes in the divorce process that can affect them for years to come, leading some to consider bankruptcy as
the only way out.


When financial problems take over a marriage and divorce results, there is often a fight over the most valuable assets. But one of the more
pressing questions is who will shoulder a majority, or all, of the marital debt. This can be one of the most contentious aspects of a
divorce.


Attorneys tell us, "If the terms of the divorce settlement are not fair, it can leave one or both parties struggling."


After a divorce, couples that enjoyed a joint income now find that they must live on far less; meaning the lifestyle they were once accustomed
to is no longer feasible. Unfortunately, many of those same people do not make appropriate adjustments to their budget.


In other marriages, one spouse may have put a career on hold or made other financial sacrifices for the family. In these cases, that spouse
will need time to work on an education or secure the training necessary to compete in the job market. If the proper amount of spousal support
has not been negotiated, it can be a matter of time before financial problems set in.