belastend
stressful
Something that causes psychological or emotional pressure, worries, or stress.
Die Pflege ihrer kranken Mutter war für sie eine sehr belastende Situation.
Caring for her sick mother was a very stressful situation for her.

stressful / incriminating
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stressful
Something that causes psychological or emotional pressure, worries, or stress.
Die Pflege ihrer kranken Mutter war für sie eine sehr belastende Situation.
Caring for her sick mother was a very stressful situation for her.

'Belastend' (stressful / incriminating) is the present participle of the verb 'belasten' (to burden / incriminate). The verb is derived from the noun 'die Last' (the burden). So something that is 'belastend' figuratively places a burden on your soul or shoulders.
Die ständigen Sorgen sind für ihn sehr belastend.
The constant worries are very stressful for him.
If you want to express for whom a situation is psychologically difficult, you use the preposition 'für' followed by a person in the accusative.
Die lange Krankheit war für die ganze Familie eine belastende Zeit.
The long illness was a stressful time for the whole family.
In the psychological sense, 'belastend' (stressful) is often combined with abstract nouns. Common collocations are 'eine belastende Situation' (a stressful situation), 'ein belastendes Erlebnis' (a distressing experience), 'belastende Gedanken' (distressing thoughts), or 'eine belastende Vergangenheit' (a difficult past).
Er versucht, die belastenden Erinnerungen an den Unfall zu verarbeiten.
He is trying to process the distressing memories of the accident.
You can recognize the legal meaning 'schuldverstärkend' (incriminating) from the context. If the text mentions 'Beweise' (evidence), 'Material' (material), 'Aussagen' (statements), 'Zeugen' (witnesses), or the 'Staatsanwaltschaft' (prosecution), this meaning is intended.
Die Polizei fand belastende Beweismittel in der Wohnung des Verdächtigen.
The police found incriminating evidence in the suspect's apartment.
heavy / difficult
'schwer' and 'belastend' can both describe feelings and difficult situations. 'schwer' says more generally that something is emotionally not easy, for example a farewell or bad news. 'belastend' emphasizes the pressure, stress, or worries that arise from a situation. So it describes the effect on a person more strongly. A conversation can be 'schwer' because it is sad or unpleasant. It is 'belastend' if it continues to create inner pressure afterward.

Die ständigen Konflikte im Büro sind für das Team sehr belastend.
The constant conflicts at the office are very stressful for the team.
Der Abschied von ihrer Familie war für Maria sehr schwer.
Saying goodbye to her family was very difficult for Maria.