For many Tennessee residents, going through a divorce can lead to serious financial problems. To begin, simply having to operate two households with the same income that previously covered one will put a squeeze on the finances of both parties. Then there is the matter of property division to consider. The division of marital wealth leaves both parties holding a portion of accumulated assets. Just as assets are divided, so is debt, leaving some newly divorced residents with high levels of credit card debt, and very little to show for it.
During property division negotiations, spouses will look at the entire landscape of family finances. That includes matters of income, assets and debt. In the same way that assets will be divided, so will current debts. In most cases, debt that is taken on during the course of a marriage is considered marital debt, and both parties are expected to assume responsibility for a portion of that debt.
This obligation often comes at the worst possible time. In the months following a divorce, individuals are faced with a number of needs. Some will have to secure new housing arrangements, while others will need to work out a new child care structure. There are numerous expenses that must be attended to, and these costs come at a time when parties are having to adjust to a new household budget. The end result for many is an increasing reliance on credit cards to cover expenses, which can lead to high levels of debt.
It is not uncommon for divorce to lead to serious financial strain for Tennessee residents. In some cases, that strain will include heavy credit card debt, and a need for debt relief. For those who are unable to overcome those struggles, personal bankruptcy may offer a path toward a debt free future, and a chance to rebuild one’s life without the shadow of excessive debt clouding that process.
Source: The Huffington Post, “Divorce and Credit Card Debt“, Justine Borer, April 3, 2017