Divorces have and continue to be a common cause of personal bankruptcies. According to Clear Bankruptcy, of the 1.5 million people that filed for bankruptcy in 2010, about 8 percent of them did so because of the pressure caused by splitting up and divorce. This begs the question why does this occur so often?
Contemplate what happens when a married couple separates. One of the spouses moves out of the family home. That spouse frequently has to rent a new place to live. This could also entail buying furnishings and other items for the apartment or house particularly where families have many children who may visit. The family does not eat together as often so food costs may rise as they may eat more meals during visitation at restaurants. The husband and wife each are likely to retain legal counsel to handle the terms of the separation and the resulting divorce. Both spouses are inclined to use their credit card to meet their regular expenses as the financial pressure builds. This results in additional interest charges on that debt.
Just as a matter of arithmetic, couples seeking divorce tend to spend aggregately much more to pay for multiple residences, additional transportation, food costs and legal bills. For many spouses who opt for divorce, emotional reasons may prompt a divorce. The urgency to get out of a bad marriage or a marriage with someone whom you no longer love may, for some people, obscure the financial effects of the inherently personal decision.
In some instances, it is harder to identify what comes first, “the financial problems or the divorce”. In fact, many divorces themselves are the product of financial stress. Back in 2009, it was reported that financial problems contribute to 45% of the divorces. Obviously, when it comes to divorces and bankruptcies, it can be a two-way street. This “chicken and egg” nature of the phenomenon shows that just as economic issues may pull married couples apart, the eventual separation and ensuing divorce will exacerbate those problems to the point that bankruptcy, particularly Chapter 7 and Chapter 13 bankruptcies, become constructive ways to relieve the extra financial difficulty caused by divorce.
In Albuquerque, Giddens & Gatton Law, P.C. has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases and can specifically provide advice as to disposition of property in Chapter 7, Chapter 11 and Chapter 13 cases.. The New Mexico firm represents many debtors and creditors in Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens & Gatton Law, P.C. at (505) 633-6298 to set up an appointment or visit the firm’s website at giddenslaw.com. Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.