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Why Divorce and Bankruptcy Are So Often Interconnected?

Divorce and BankruptcyWhen you go through the challenging process of a getting a divorce in Florida, you need professionals on your team who could help you understand the various ways that Florida law impacts your future.

It is certainly pertinent, for example, to hire a Coral Gables family law attorney to help you navigate this complex system. That being said, you may also have other legal concerns during this time as well.

Divorce often wreaks havoc on you and your spouse’s finances. The process of dividing joint accounts, assets, and debts may seem overwhelming and it can have a significant influence on your ability to move on.

Basics of Bankruptcy

If you believe that your financial situation is out of control or that the debt divided between you and your spouse is unbearable and impossible for you to keep up with, you may be considering bankruptcy as well as divorce.

The most common types of bankruptcy that people consider when filing for debt relief are Chapter 13 and Chapter 7.

Chapter 13 is commonly referred to as repayment bankruptcy because it typically requires a payment of some or the entirety of the filing party’s debt over the course of three to five years.

After this period, the remainder is usually discharged. Chapter 7 bankruptcies are more common because these wipe out all existing dischargeable debts.

Remember that not all debt is dischargeable. Some of the non-dischargeable debts include domestic support obligations, student loans, debt incurred by fraud, taxes and criminal fines.

One of the most important things to consider is when you choose to file bankruptcy. If you are still married to your spouse, but thinking about divorce, it’s actually a common myth that if one spouse files for bankruptcy the other must as well.

One spouse is permitted to file for bankruptcy without the other, although in the majority of cases both spouses’ incomes are accounted towards bankruptcy eligibility if the person is seeking a Chapter 7 bankruptcy filing that requires an income test for eligibility purposes.

If you’re thinking about filing for bankruptcy, one of the most important steps is to meet with an attorney first. Depending on the timing of your divorce, it might make more sense for you to file for bankruptcy before or after the divorce is final.

Bankruptcy During Divorce

Many people understand that one of the most common causes of divorce is financial difficulty. This is one of the biggest reasons why bankruptcy and divorce are so often linked.

You may be wondering whether it is beneficial to file bankruptcy or divorce first. Of course, this is a conversation for your experienced bankruptcy attorney and you may wish to retain a bankruptcy lawyer at the same time that you hire your Florida family lawyer.

There are benefits, however, for married couples who are thinking about filing for both divorce and bankruptcy as far as filing bankruptcy first.

If you decide to file for divorce first because the divorce cannot wait or if one spouse is counting on financial support from the other, then you want to speak with your divorce attorney about how filing for bankruptcy down the line could impact the future for both of you.

Given that financial problems are such a common cause of divorce in the United States today, and that many people find it difficult get their footing back after going through a divorce, only you can decide what is most appropriate for you.

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Speak with an Experienced Divorce Attorney Florida

Consulting with a divorce attorney in Florida and a bankruptcy attorney may be the best way to determine whether a particular strategy is recommended for you first or not.

Working with an experienced lawyer before you decide to file for divorce will make the process easier to understand.

Divorces in Florida must go through particular stages prior to the final divorce decree, so it’s wise to be clear about what to expect well before you file.

Having an attorney who cares about your future will help to protect your interests with all divorce issues, including division of property, child custody, child support, and spousal support.

Learn more about protecting your interests after deciding to get divorced here: https://www.mepfamilylaw.com/protect-financially-filing-for-divorce/

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The Estevez-Pazos Law Firm, P.A.
135 San Lorenzo Avenue, Suite 650
Coral Gables, Florida 33146

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