Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Does Bankruptcy Cause Divorce?

Bankruptcy doesn’t cause divorces or lead to divorces – but financial stress does. In fact, money troubles are cited as the leading cause of divorce. Anxiety over paying the bills, creditors harassing you daily, and other financial stresses can add undue strain to your marriage. While filing for bankruptcy can help with many of these financial stresses, it may not help any underlying problems in your marriage.

When our clients file for bankruptcy, it is very important for them to understand why they are in financial straits to begin with – perhaps they have faced an unforeseeable emergency like a job loss or medical emergency. Or perhaps they never properly learned how to best manage their money. In some cases, a lack of communication between partners regarding money matters may add to the issue.

Bankruptcy doesn’t cause divorce any more than any other major life change causes divorce. While the time period before a bankruptcy filing can be stressful, and while life after bankruptcy can be an adjustment for everyone, many, many couples survive and  thrive in the years after their bankruptcy. In other instances, financial troubles and bankruptcy may be symptoms of deeper issues in a union. Bottom line: bankruptcy won’t lead to divorce, but it probably won’t solve marital problems, either.