Colorado couples who are considering getting divorced should keep in mind that some experts believe getting out of debt can save a marriage. Debt can cause problems in even the most stable marriage, and getting out from under it can relieve a significant amount of stress. According to a Couples & Money study by Fidelity, 40 percent of couples state that debt has a negative impact on their marriage. Couples who struggle with debt are more likely to have poor communication, and individuals often disagree on who is responsible for the most debt. This can lead to fighting and stressful conversations about money.
According to a study released by Utah State University, one of the top predictors of divorce is arguing about finances. Couples who fight about money are 30 percent more likely to divorce than couples that either do not argue about money at all or do so sparingly. While few couples divorce solely because of money, stress over money is at the root of many splits. One way couples can tackle the problem head-on is to get everything out on the table and have an honest discussion with each other about how to pay down debt.
After sitting down together and looking over their finances, couples should then decide if they want to pay down their debt with the “snowball” method or the “avalanche” method. The snowball method involves paying off small debts first, which can help couples build momentum and confidence. The avalanche method involves paying off the debts with the highest interest rates first, allowing couples to save the most money on interest.
People who are considering getting a divorce may want to consult with Greenwood Village, Colorado, divorce attorneys with experience in divorce and asset division. An attorney may be able to help someone determine who would get which assets in the event of a divorce. A lawyer may also be able to help determine which spouse is responsible for which part of the debt.