Navigating The Complexities Of Bankruptcy And Divorce
A Key Contributor To Divorce Cases
Family finance issues are one of the key reasons couples seek divorce. As a result, when money troubles are in play, it makes sense that bankruptcy proceedings and divorce proceedings often go hand in hand.
Proper planning is essential when bankruptcy and divorce proceedings must occur simultaneously or close in time to one another. Many questions must be addressed, including:
- Should bankruptcy be filed individually or jointly?
- At what time does it make sense to file for divorce or bankruptcy (before or after the divorce)?
- Is there a way to reduce my court costs and attorney fees?
- How does the amount of debt I have affect my decision?
These are just a few of the many considerations that must be addressed before you can determine a plan right for your situation. At Palmer Lehman Sandberg, PLLC, located in Dallas, our lawyers have the experience and resources needed to set you on a path to success. We will carefully review your situation and determine with you how best to achieve your goals.
Which Should I File First?
In some situations, it makes sense to file for bankruptcy before divorce. For example:
- Assets will not be part of the bankruptcy estate at the same time the family court is seeking to divide marital assets
- Both parties might know that they will file for bankruptcy following divorce, so this gets everything done in one process
- The parties will be able to discharge certain joint debts
- You could increase your bankruptcy exemptions by filing jointly
Of course, filing for a joint bankruptcy prior to divorce will not be right for everyone. Our job is to evaluate your specific situation and evaluate the best option given your circumstances.