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MARRIAGE BREAKDOWN AND BANKRUPTCY

September 5, 2017

Marriage breakdowns are a leading cause of bankruptcy, or wait a minute – is it that bankruptcy is a leading cause of marriage breakdowns. Hmm which came first

There is no doubt that financial problems contribute to stress in matrimonial relationships.  People are far more inclined to speak openly, with each other and with their friends, about their sex lives than about their financial situation.  This is especially true if they are having financial problems.

We have all heard coworkers grumbling about the lack of romantic liaisons in their lives, whether it is women complaining about their husbands’ insensitive demands or men complaining about their wives’ indifference to their advances.  Yeah, O.K. so there is some stereotyping there but you get the point!

When was the last time you heard your coworkers saying something like “I have to remortgage the house to pay off my credit cards so that I can use my credit cards to buy groceries”?   Didn’t think so!

The Bankruptcy & Insolvency Act can be used as a tool to help married people address their debt problems and learn more about budgeting.   Alternatively the Bankruptcy & Insolvency Act can be used to help separated or divorced people address their individual debt problems and learn more about budgeting so that hopefully they don’t make the same mistakes in their next relationship.

Bankruptcy is a process that can have a significant effect, in a matrimonial separation or divorce, on the division of assets, including the equalization of pensions. But it cannot be used to get anyone out of their responsibilities for support payments, either spousal, child or parental (yes that’s right you can be ordered to support your parents).

These days relationships seldom last more than a decade, statistically speaking, not only are we becoming a nation of divorcees but we are also becoming a nation of single people – people are less inclined to go back and remarry in search of that “perfect partner”.  Is that the result of a social values shift or are people just being more pragmatic?

The divorce rate has apparently increased in tandem with both the bankruptcy rate and personal indebtedness – is there a causal relationship? That would be an interesting study!  If you had less money problems would your marriage/relationship improve?  Perhaps not – divorce is still popular amongst the rich and famous.

If you or someone you know is having debt issues call the office for a free consultation to review all of your/their options and perhaps even save a relationship!