Many people have medical, credit card and student debt. Debt can severely impact families. Not only can large amounts of debt limit opportunities for families but it could also lead to marital friction.
There are several ways that debt may harm a marriage and cause a divorce. Here is what you should know:
A spouse may hide their debt
It is possible that a partner has a large amount of debt that they are hiding from their spouse. This debt could have been accumulated after spending sprees, gambling or poor investments. It may not be obvious that a spouse has a considerable amount of debt until after marriage. Once a spouse finds out that their partner has this debt, it could create conflict.
High interest and late fees can impact finances
It can take a long time for people to pay off their debt, especially with high interest and late fees. Families may have to spend a large amount of their monthly income to whittle away at their debt. Paying off debt can impact finances. As a result, families may not have the money to buy necessities, such as food, rent or electric, gas and water bills.
Debt can limit loan opportunities
When couples have a large amount of debt and continually miss payment dates, it can limit loan opportunities. If a family can not apply for loans for vehicles or housing, then it could lead to resentment from a spouse who is looking to improve their quality of life.
During a divorce, couples will likely need to discuss the distribution of debt. Legal help can provide options to protect people from excessive amounts of debt during the divorce process.
