Bankruptcy and divorce can some times go hand and hand. The financial difficulties that lead a couple to consider bankruptcy can also put such strain on the marriage that a separation or divorce also is contemplated. How to address the payment of debts and the potential liquidation of assets is part of both areas of law.
If you are in bankruptcy at the time you separate and are contemplating divorce, you may need to work with both your bankruptcy attorney and divorce attorney to determine what the bankruptcy court will allow and then to factor the bankruptcy into debt and asset allocation. Terms of spousal support and child support may need to be negotiated in conjunction with the bankruptcy plan, what the trustee will allow and what the Bankruptcy Court will allow.
Questions also arise if a spouse threatens bankruptcy and how that does or does not impact marital debts, payments of spousal support and payment of child support.
Consultation with a family law attorney who understands the dynamics of complexities of the interplay between divorce and bankruptcy can put your mind at ease.
