How financial difficulties can contribute to divorce

On Behalf of | Feb 26, 2024 | Divorce

Divorce can happen for many reasons. For some people, a divorce may happen after someone discovers their spouse is cheating on them. Or, divorce could happen because of conflicting parenting styles. 

Many people don’t realize that money can also contribute to divorce. Here are a few examples of how financial difficulties can lead to divorce:

A spouse is unemployed

Many people suffer from unemployment. This can create a lot of different financial difficulties. For example, the loss of a large yearly income that contributed to mortgage payments and investments could create a lot of debt. Or, a spouse may be struggling or unwilling to find a job after unemployment. This can create tension in a household and lead to divorce.

A spouse is financially controlling the other

Money can also be used to manipulate a relationship. Consider a household where one spouse is the primary breadwinner and the other cares for a home or child. The spouse who makes an income may control what the other is or isn’t allowed to buy. This can restrict a spouse’s freedom and cause them to develop resentment. 

A spouse disagrees with investments

Someone may have a large income, have inherited a large sum or money or won the lottery and decided to invest it into stocks or other entities. A spouse may disagree with this investment and consider filing for divorce.

A spouse is overspending and creating debt

Many people develop large amounts of credit card debt. This can happen because of late fees, interest or overspending. Credit card debt can create a lot of issues in a relationship for several reasons. The debt could have been hidden from a spouse or savings or other investments may have been used to pay off the debts.

For high-asset households, it can be important to understand your legal options as you go through a divorce.