It is estimated that about half of the marriages in the United States will ultimately end in a divorce. This number means that there are many people in New Jersey and nationwide who must go through the difficult process of dividing assets and splitting up into two households. For many people, this can end up being a costly event.
The financial commitment of getting divorced is not just about paying for legal representation. There are a number of significant challenges that come up during even the most amicable divorce which can cost much more than a person may realize. Instead of having income support one household, that same amount of money must now support two. Bills can be higher and there may be child or spousal support ordered. For many people, getting divorced can send them into debt and they may consider filing for bankruptcy as a debt-relief solution.
Last month, we discussed the financial troubles that actress Kelly Rutherford was dealing with due to her own divorce. At one point, Rutherford was reportedly pulling in $486,000 a month when she was on the popular show “Gossip Girl,” but because of a contentious and lengthy divorce process, her finances had been drained and many wondered if she would file for bankruptcy protection.
Sources have stated that Rutherford has spent a whopping $1.5 million in the legal battle against her ex-husband. The two were fighting over custody of their children and Rutherford ended up selling her home and many of her possessions and withdrew a significant portion of a retirement account in order to pay for the ongoing dispute. Still, the legal fees, debt charges and tax charges continued to mount and she is now about $2 million in debt.
It has been reported that Rutherford has recently decided to file Chapter 7 bankruptcy. This may be a good option for people who find themselves in a similar situation to Rutherford as it can effectively discharge unsecured debts such as personal loans, medical debts and credit card debt. By having these debts wiped away, it can be easier for people to get back on their feet and move forward. Just like divorce can be seen as a way to make a fresh start after an unsatisfying marriage, filing for bankruptcy can be a way to make a fresh financial start after dealing with some difficult situations.
Source: AOL, “Gossip Girl actress said to have filed for bankruptcy,” Sarah Coles, June 25, 2013
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