According to recent studies, more than 50% of people believe debt is a reason for divorce. But just because you or your spouse has student loans or credit card balances doesn’t mean you need to break up.
Being on the same page about money with your spouse is extremely important to keep your marriage happy and successful. Creating a budget with your spouse can save your marriage.
Why Debt Can Cause a Divorce in Otherwise Happy Marriages
So many marriages end due to debt because money becomes a source of contention. One spouse may feel like they’re always strapped for cash, while the other feels they’re spending too much. This can lead to tension and, ultimately, divorce.
Another reason is if the spouse in debt has been hiding it from the other. This can lead to explosive arguments when the truth comes out, as one spouse may feel embarrassed or ashamed.
Divorcing Because of Debt May Not Be the Best Solution
There are many factors to consider before deciding whether or not to break up because of debt, but understanding the potential consequences is key to making the right decision for yourself and your loved ones.
Divorces are expensive. Lawyer fees, alimony, and division of assets can quickly add up. Unless one spouse has a good financial background, divorce debt may add to the financial stress for both parties.
A divorce can be emotionally devastating. Losing your home, assets, and children can be a huge shock. Money may not be the only thing lost in a divorce, and emotions can run high when it comes to debt.
Divorce can destroy your credit score. This can make it difficult to get a loan in the future and could even impact your job prospects.
You may lose important financial assets, such as retirement savings or inherited property.
What To Do if You or Your Spouse Is in Debt
Here’s how you can navigate these tough financial waters and stay together:
1. Talk openly and honestly about your finances. Don’t try to hide or sweep anything under the rug – open communication is key to keeping your relationship strong.
2. Make a plan together. If one of you is struggling financially, it can be hard to keep up with bills and stay on top of loan payments. Work together to create a strategy for managing debt – set realistic goals and agree to meet them as a couple.
3. Seek help from professionals. If things are getting too complicated, don’t hesitate to seek help from qualified financial advisors who can help you figure out a debt repayment plan that works for both of you. You may also want to pursue finding a therapist who has experience with debt issues and help you understand how you and your partner got into this situation.
4. Don’t be ashamed of your debt. These feelings can cause many to hide their debt from their partner. But openness and honesty will go a long way in repairing your relationship. Your debt is not you or your spouse; it’s simply something that’s temporary in your life that needs to be managed.
The Bottom Line
No matter what type of debt you are in, it is essential that you work with your spouse to eliminate its negative impact on your relationship. Together, you can find a way to overcome debt so that it does not threaten your marriage.
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