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Legal issues with divorce and bankruptcy

On Behalf of | Dec 10, 2014 | Uncategorized |

A Florida couple may face financial challenges as they are considering a divorce, and in making a fresh start, there may be an interest in exploring bankruptcy to deal with unmanageable marital debt. A divorce does not necessarily terminate financial ties to your spouse, making it important to have reliable advice both during the settlement process and as bankruptcy is considered.

You might decide to wait until the settlement has been reached before filing for bankruptcy. It is important to remember that bankruptcy won’t get rid of child support or spousal support obligations. Similarly, if your former spouse owes support, bankruptcy is not a reason to stop paying. Failure to pay could result in both legal and financial problems for an individual who fails to pay support. If a change in financial condition occurs at a later date, modifications may be necessary.

Those going through a divorce who have significant levels of joint debt might determine during the settlement process how these debts will be handled. However, the failure of one party to pay certain debts could result in financial implications for the other party. A creditor could seek payment from the other party, and such possibilities may need to be considered prior to a divorce settlement being reached. A strategy for limiting problems might include a provision that you will be compensated for costs incurred if you have to defend yourself in a debt collection situation.

If you anticipate financial challenges in connection with your divorce case, you may want to include protective terms in your settlement agreement to ensure that you aren’t negatively affected by your partner’s default or bankruptcy. You are invited to visit our page on bankruptcy and divorce to learn more about these matters.

Source: Thompson Family Law, “Fort Myers Bankruptcy and Divorce Lawyers “, December 08, 2014


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