Among these common life experiences are illness, death and divorce. But how exactly does divorce lead to bankruptcy?

Take this scenario I came accross in my Cambridge office last week… A couple has two incomes supporting one household. Together, they cover all of the living expenses including mortgage payments, food, utilities, child care costs and car payments. When a divorce happens, suddenly the two incomes are no longer combined.

Now you have two separate people supporting their own homes. The problems get compounded further when children involved who will be visiting both parents, expenses are driven up for both parties as each home will need to be equipped with what the children need including space, furniture, food and computers for homework. The fact that the divorce itself would also create huge costs in terms of legal fees makes it easy to see how divorce leads to financial trouble.

With only one income, the lifestyle the couple was accustomed to when they were together is no longer manageable for each of them separately. When people are struggling to get by on their own, they often begin using credit cards to get by in the short term. It is incredibly easy to create huge credit card debt in a short period of time and eventually need to file for bankruptcy.

When a divorce happens, it is a very difficult time for a family both emotionally and financially. Everyone needs to make adjustments to how they are living if each former-partner is going to get by on their own income.

If you are separated/divorced and are facing serious financial debt, call me today at 519-622-3773 or send me an e-mail. I will be happy to answer any of your questions or arrange an initial consultation to start mapping out your plan to get back on financial track!