Divorce and Bankruptcy: A Match Made in Court
A common denominator between divorce and bankruptcy is they can both have a major impact on a person’s finances, with one often leading to the other. The ironic thing is that money remains the number one stress in many relationships, and it’s this stress that can lead to divorce. This then serves to create more stress over the financial burdens created, leaving both people in a worse financial standing when all is said and done.
With the emotions of divorce, there can also be a fair amount of finger-pointing about which spouse is more at fault for the couple’s financial woes. Unfortunately, the blame game may not be relevant, considering both spouses are responsible for debts incurred during the time of the marriage. So while you may be able to divorce an unwanted spouse, you continue to remain married to those debts post-divorce.
“The court reviews all documentation prior to ruling in a divorce case, while we also advise our clients about debts that need to be considered in the final outcome,” said Norman Green, Senior Partner at Green & Metcalf of Vero Beach, FL.
In some cases, divorcing spouses may file for bankruptcy before they file for divorce, in order to make the best sense financially. However, at other times, filing for bankruptcy may make the situation even worse for both spouses. This is precisely why we encourage our clients to let our divorce attorneys assess their financial status and advise them on what will be the most beneficial for them as they reestablish their finances post-divorce.
“While we certainly don’t recommend bankruptcy for every client, there are some situations where it may prove more of an asset than a liability for them. That said, it’s best for clients to make an appointment with our divorce attorneys to discuss specifics further,” Green said.
Norman A. Green is the founder and a partner of Green & Metcalf - Attorneys At Law. He has over 40 years of experience in the practice fields of criminal defense and family law (divorce, child custody, child support, paternity, modifications of existing orders, prenuptial agreements and alimony cases).
