Sunday, August 22, 2010

Divorce And Bankruptcy

Divorce has long been a common theme for couples in the United States. The group Americans for Divorce Reform estimates that anywhere from 40 to 50 percent of all marriages end in divorce. While marriages fail for a variety of reasons, financial problems are often cited as one of the main factors in the dissolution.

Likewise, the economy, unemployment rate and dip in the housing market have all been mentioned as factors contributing to the rise in bankruptcy filings in recent years. In 2009, over one million people filed for bankruptcy and it is expected to be even worse this year. The American Bankruptcy Institute predicts there will be more than 1.6 million personal bankruptcy filings by the end of 2010.

Though many couples cite financial difficulties as a reason to seek divorce, divorce can also create financial problems of its own. If people are not careful, they can make mistakes in the divorce process that can affect them for years to come, leading some to consider bankruptcy as the only way out.