Few things can complicate life like financial difficulties. It’s hard to maintain good relationships with your loved ones when you’re going through hard financial times. In fact, one of the leading causes of divorce is… you guessed it – financial disagreements. If you are at the point where bankruptcy is the option you plan on taking to get on the road to financial recovery, you may have concerns about how this choice will affect your spouse. This is a very common concern for people going through bankruptcy. Every financial decision you make has some effect on your spouse, so knowing what to expect going into the process is a huge benefit.

Individual or Joint Bankruptcy?

The biggest decision you will have to make in regard to your marriage when you are considering a bankruptcy is whether it should be joint or individual. There are a few things to consider before you decide. As you go over your financial records and debts classify them as debts that you accrued by yourself and debts accrued as a couple. You might have a lot of bad debt from your single days that have no direct bearing on your spouse’s finances. If you have a lot of bad debt that was not mutually accrued with your spouse, you may want to consider filing for individual bankruptcy. If your spouse has a lot of possessions and substantial savings and is not lumped in with your individually accrued debt, this is a logical route to take.

If you and your spouse have a lot of community debt and very little debt that was built up individually, you should probably opt for a joint bankruptcy. Couples in Mesa, AZ and other areas of the country who have substantial debt as a couple will usually file for joint bankruptcy to wipe the slate clean for both partners in the relationship.

Be Aware of Income Guidelines

If you intend to file Chapter 7 bankruptcy as an individual, you have to be aware that your spouse’s income will have an impact on your options. Your joint income may be considered even if you intend to file individually. That means that if your joint income exceeds local limitations for Chapter 7, you may not be able to choose this option. Be sure that you know what the limitations are in your state as far as income is concerned before you attempt to file for Chapter 7 bankruptcy.

Whatever your final decision is about filing bankruptcy, do all that you can to be open and honest during the process with your spouse. By keeping the lines of communication open and being honest with your mate, you will lessen the chances of a bankruptcy taking a serious toll on your relationship. If you and your spouse work together through this process, you will come out of it with a stronger relationship and a better financial outlook.