Bankruptcy and Divorce; How to Work Things Out

A recent survey of over 4,500 couples revealed that the number one reason for divorce is arguments about money. Interestingly, the amount of money that a person makes does not seem to have any impact on this. No matter how much money a couple has or how much debt has been accumulated, money fights are the main cause for ending the marriage. Unfortunately, financial pressure and divorce often go hand in hand.

“My mother always said don’t marry for money, divorce for money.”

Wendy Liebman, Comedian

Miss Liebman adds a little humor to a very emotional subject. When financial pressures have caused enough marital stress so that divorce is imminent and bankruptcy is likely, the pressures can be especially difficult. If you and your spouse seem to have headed down a path that leads to both divorce and bankruptcy, the complexities can be overwhelming. As you consider all of your options, here are a couple of thoughts that may help simplify things for you.

Filing Bankruptcy Before Divorce

As you may have guessed, each couple that begins this process has a unique situation. There is no one-size-fits-all bankruptcy and divorce solution. If you know that you are going to need to file for bankruptcy, working together with your spouse and filing jointly before getting a divorce could be the best option. This is especially helpful if you have joint debt.

Filing For Divorce After Bankruptcy

Filing for bankruptcy before your divorce is final will cut your bankruptcy filing fees in half. In addition, a joint filing can make the next part of this process (the divorce) a lot less messy. Since divorce is about the fair disbursement of assists, liabilities, and responsibilities, a post bankruptcy divorce will be one with no joint debt obligations to distribute.

The Divorce First Option

It is not always advantageous for both parties to file for bankruptcy jointly. If one party is not planning to file for bankruptcy, or if all the debt is individual debt, then filing jointly might not be the best option. There are other factors that might make it necessary to get a divorce first, such as child custody issues, or if there is abuse or safety concerns. In these instances, it might be in your best interest to file for divorce first.

The Help of Someone Who Knows The Process

If you are in the middle of both marital and financial hardship and you’re looking for a fresh start, the best option is for you and your spouse to work together to solve these issues. Having an advocate can help you sort out what is best for you and your family. Here at Grand Law Firm, we are experienced in bankruptcy law and can help you navigate through the process and make educated decisions with your best interests in mind. For more information, or to schedule a free consultation at one of our convenient locations in New Orleans and Baton Rouge, contact us today.

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