Disagreements over money are a leading cause of divorce, so it should be no surprise that the resulting divorce is contentious. The emotional and financial strain can quickly spiral out of control between mounting legal fees, disputes over property and ongoing battles over support or custody.
High-conflict divorces can create financial hardship, leading some individuals to consider bankruptcy as a way to regain stability and start fresh.
Why are high-conflict divorces so expensive?
Contentious divorces usually involve ongoing disputes that require significant time and resources to resolve. Rather than negotiating agreements, spouses may contest every issue, including:
- Alimony
- Child custody and support
- Division of marital property
- Responsibility for marital debts
Each disagreement means more court hearings, more legal filings and more attorney time. In addition, some spouses intentionally prolong the process, thereby increasing financial pressure.
Mounting legal costs can trigger a financial domino effect. A person may begin relying on credit cards or personal loans to cover daily living expenses or pay their attorney. Additionally, divorce can reduce the household income. Rather than one household being supported by two incomes, each party is responsible for their own home.
Common financial challenges during a high-conflict divorce can include:
- Difficulty paying the mortgage or rent
- Falling behind on car loans
- Growing credit card debt
- Depleted savings and retirement accounts
A car repair, unexpected court costs or a medical emergency can bring the house of cards tumbling down, and bankruptcy may become necessary to address overwhelming debt.
Timing matters. Filing for bankruptcy before finalizing a divorce could make it easier to address joint debts and simplify property division. However, there are some circumstances where waiting to file after the divorce is a better option.
Every situation is unique, which is why you will want to work with someone who understands the interaction between divorce orders and bankruptcy law. The decisions you make during a divorce may affect your financial obligations for years to come.
