Divorce Over Debt
As the old expression goes, “there’s no romance without finance.” And this is definitely the truth. In fact, a recent 2017 survey showed that as many as 21% of all divorces were at least in part due to financial instability and debt. What makes this particularly troubling for a lot of couples is that debt means two things – the couple is under pressure financially and the couple may lack the means to survive apart. This compound problem is only made worse by the reality that divorce is not free.
At the Law Offices of Todd K. Mohink, P.A., we always strive to keep divorce affordable for clients, especially those people who are divorcing over debt and financial difficulties. If this applies to you, consider the following:
Maryland Law Loosened the Time Limits
In 2015, the Maryland Legislature eased some of the requirements for an absolute divorce. If you have no children together, the law removed the 12-month waiting period, meaning you can request a no-fault divorce and get divorced easier and faster than ever before. If you are struggling financially, you may want to consider meeting with a lawyer together to discuss your finances openly. Some couples may even be considering a bankruptcy. If so, it’s a good idea to work with a lawyer who can help with both issues.
Common Debt Questions in Divorce
Divorcing couples who have serious financial problems often have a handful of concerns. These tend to include:
- What happens to the house if we don’t have both incomes?
- How will we pay the bills separately with less income?
- Will we be stuck paying for each other’s student loans and other debts?
- If I file for bankruptcy, can I include debts to my spouse?
Most Debt Problems Actually Get Better After a Divorce
While it may seem counterintuitive, a lot of people find that after a divorce they get out of debt faster. Married couples tend to spend money faster and go into debt faster than single or divorced people. Consider a few things that may help you get out of debt faster following a divorce.
- The House. First, you may indeed need to sell your home after a divorce. If neither of you can afford the mortgage alone, it may be wise to unload the house. A home is only an investment if you can afford it. Millions of Americans are living above their means, and not always on purpose. Housing markets crashed less than 10 years ago and many people are still digging out from under the crushing weight of being upside down on their financial obligations.
- Be Rid of Debt. Second, after a divorce you will likely only be responsible for a portion of the debts you used to worry about. This means you might find yourself relieved to be rid of a spouse’s enormous student loans or other debts.
- Time to Rebuild. Finally, some divorced individuals find that they have more time and energy to devote to their career or a second job after a divorce, leaving them in a better position to rebuild.
Getting Help Is Easy
Whether you are in Anne Arundel County, Baltimore, or Howard County, the Law Offices of Todd K. Mohink, P.A. are here to help. Give us a call or visit us online today to learn more.