Most people correctly view bankruptcy as a way to save their financial situation. Yet filing often has benefits in other areas of life – including marriage.
Maintaining a marriage can be difficult in the best of times. When one or both spouses get into debt they cannot afford, it is bound to affect them as individuals and as a couple. One study found that 54% of respondents considered a spouse’s debt a reason to consider filing for bankruptcy.
Trust can suffer
A couple must be able to trust each other. Debt can drive wedges into that trust when one spouse feels the other was more to blame than for it than them. For instance, a couple may face a medical bill they cannot afford if their child has a serious accident. Even though both would do anything to see their child healthy again, blame and guilt may seep in.
An example: One spouse racks up too much credit on the joint card. The other spouse disapproves of their spending and feels it is stifling their ability to spend on other things, such as saving for a deposit on a home. Next time either party goes to spend on something they know the other would disapprove of, they hide it. They are worried their spouse will get upset with them over it, and they also may feel guilty knowing that an item was not a necessity.
On top of this, people can spend a lot of time and mental energy on thinking about the debt. That is time that is not being invested in maintaining the relationship. Worrying about how to repay debt can also put people on edge, leaving them less tolerant, which can mean simple discussions may more easily turn into arguments.
Credit scores can suffer
A spouse with a healthy credit rating may fear that their spouse’s spending will end up harming their credit score. They may fear that even though the debts were incurred by the other person, the lenders may come after their assets, too.
Learning more about how bankruptcy works is a wise first step for anyone who is in overwhelming debt — especially if it is negatively affecting their marriage.