Money problems can be a big reason for a couple to get a divorce. When you are getting a divorce and you are also considering bankruptcy, the timing of the filing is going to be critical. Some couples choose to file for bankruptcy prior to filing for a divorce, making it easier to divide anything that might be left. Others decide to file during the divorce, making it hard to divide up any assets or debts because assets are hard to touch during a bankruptcy. The last choice is to file for bankruptcy after the divorce is complete, an option when one party doesn't want to file and the other does.
When Your Bankruptcy Is Before Your Divorce
Filing for bankruptcy before your divorce makes the process easier. If you and your spouse can hold off on filing for divorce until your bankruptcy is filed, this can make your divorce go more smoothly. Once you get rid of the debts you can through a bankruptcy, you will have a clearer picture of what is left. If you owe back taxes or student loans that can't be discharged, you will need to work out who is responsible for each debt in your divorce agreement. When you file together, there will only be one filing fee while there would be two if you file separately.
Filing for Bankruptcy During Your Divorce
If your divorce is complicated already, don't make matters worse by filing for bankruptcy at the same time. When you file for bankruptcy, this can freeze certain assets. The middle of a divorce is hard enough and would only be worse if you couldn't access your own money. Talk with a bankruptcy law firm before you file to see what makes the most sense in your situation.
Bankruptcy After a Divorce
When you leave a marriage with debt assigned to you, it could be time to file for bankruptcy. You can't erase debts like back taxes in bankruptcy. If you plan to file but your ex doesn't plan to after the divorce, you may be able to take on more of the debt you can discharge vs. those that you can't when you file your divorce. Once you file your bankruptcy, you will be able to move forward financially with your life.
Divorce is hard enough. Don't make your divorce more complicated by fighting over when to file for bankruptcy too. Talk with a bankruptcy attorney before you file anything so that you know what path to take.
Contact a local bankruptcy law firm for more information.