Most of us are aware of the statistics, half of marriages end in divorce. According to www.divorcepad.com/rate the likelihood of a divorce is even higher in a second marriage and higher still in a third. Financial problems are one of the leading causes of divorce. In an article Dr. Phil writes, “It’s this simple: Money can ruin your marriage.” Financial trouble is never easy and can be doubly tough in marriage. In some marriages the spouses do not see eye to eye about their finances. In other marriages one spouse had substantial debt before marriage. Debts and financial problems lead to argument after argument. In desperation people ask themselves, “When will it end?” That’s a good question. Many try divorce only to find the debts are still there. It’s true, divorce does not make debts disappear and getting your own place isn’t cheap. Other couples see debt limiting their ability to pursue their dreams. Here are a three issues to consider.
Buying a house
Most couples hope to buy a home together. Usually they view a house as a tangible way to build their lives together, the American Dream. The trouble is debt can hold them back. Qualifying for a mortgage is rarely easy and for a couple living paycheck-to-paycheck and struggling to pay their bills it may be impossible.
What about the kids?
Many couples have children and are deeply conflicted: on the one hand they feel a duty to pay their debts, but on the other hand they see month after month how their debts impact the lives of their kids. Some parents are forced to work two jobs just to make ends meet while other parents endure long commutes. As the kids grow older people wonder, “When will we be able to be home more?”
When will we retire?
When money is tight, one of the first things people do is stop saving for retirement. It starts as a short-term solution to a cash crunch but all too often becomes an every month situation. Beginning in the 1980’s society began to transition away from mandatory pensions to voluntary retirement options like Individual Retirement Accounts (IRAs) and 401k plans. The voluntary nature of these plans allows people to elect not to save for retirement, and according to a study by the U.S. Government Accountability Office the vast majority of Americans are not saving enough for their retirement. Advances in medical science are allowing people to live longer and longer, which makes the retirement situation dire.
Are you trapped in the debt cycle? Is debt causing marital problems? Is debt holding you and your spouse back? The bankruptcy laws offer the honest but unfortunate person or couple a fresh start. Bankruptcy is a chance to break the debt cycle.
At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch, and Hercules.