Money and financial stability can have an enormous impact on the health of a marital relationship. When things are going well and two people are on the same page about their finances, they may have no trouble getting along. However, when times are tough or if people don’t agree on spending habits, these issues can cause irreparable harm to the marriage.
In some cases, money woes tear two people apart and they may decide to get divorced. In other situations, the money problems don’t crop up until a couple is going through the process — and expense — of getting divorced. In either case, debt can prove to have an enormous impact on the individuals.
In Tennessee, divorces are subject to the state’s equitable distribution laws. This means that, generally speaking, all the assets a couple shares or acquired during the marriage will be divided in a manner that a judge determines to be equitable. This will include any debt that a couple has acquired.
After a divorce, people can find it extraordinarily difficult to pay down debt. Many folks are already transitioning out of a situation where two incomes supported one household and may not be able to — or know how to — keep up with the same financial responsibilities on an individual income. Additionally, there are typically added expenses that come with actually getting the divorce which can mean further strain on financial resources. Over time, new and existing debt can prove to be unmanageable.
In some cases, it may be necessary to explore options for filing for bankruptcy protection. Those who choose this option can have their debts discharged or adjusted with a repayment plan, depending on the type of bankruptcy that is filed.
Most people wouldn’t go through the legal process of getting divorced without the help of an attorney because of how complicated it can be. The process of filing for bankruptcy is similarly challenging in terms of the legal obstacles and emotional strain that often comes with such an upsetting situation, so it can be important to work with an attorney during this process as well.