Bankruptcy and Divorce

Did you know that when you file for divorce, one of the “assets” that is eligible to be divided amongst the two parties is debt? Yes, you could end up paying college tuition for your spouse, or their hefty credit card bill; although the same goes for them if you have any leftover debt. It is an interesting quirk to divorce law that can be beneficial for someone going through divorce, or a pain for someone going through a divorce.

Dealing with these debts before the divorce gets rolling can save both you and your spouse a lot of stress and unnecessary litigation. For example, if you seek a bankruptcy claim before divorce, you could have some of your debts discharged. That’s one less thing the two of you have to worry about when discussing a divorce agreement, and it allows you to focus on the more important aspects of your divorce.

Obviously, you will want your divorce lawyer to have a grasp of bankruptcy law if you choose to go this route. What else can you do with a bankruptcy filing while going through a divorce? Well, if you can convince your spouse to go through the bankruptcy with you, then it could help even more when the divorce comes around. It’s no guarantee, and every case is unique; but it could benefit certain parties to go this route.

Consult the law offices of Johnson, Sclafani & Moriarity so that you know which legal options are best for you as you contemplate divorce. 413-732-8356.