It is extremely common that when it comes time to file for bankruptcy, there is also a divorce looming on the horizon. Money is a huge factor in the dissolution of many marriages, but even if the divorce is not amicable, there is no denying that both halves of a couple want a fair shake at the rest of their life. So is it more advantageous to get a divorce first or to file bankruptcy first?
In most cases, bankruptcy proceedings should take priority over a divorce. Not only would filing for bankruptcy after beginning divorce proceedings slow down your bankruptcy significantly, but it can affect the asset division in a divorce.
Both divorce and bankruptcy are incredibly difficult, and while it may seem like a good idea on paper to do them at the same time, you will regret it. One of the biggest reasons for regret is if you are still on speaking terms with your soon-to-be ex-spouse, you can file jointly for bankruptcy if you are still married. This means that there will need to be no division of debt so your debt, as a couple, will be wiped out all at once.
If you choose divorce first, the debt and assets will need to be divided and one spouse may find that they are given a vastly larger amount due to their part in the spending. This also means that some couples may need to have two separate bankruptcy hearings, one for each person, and no one wants that.
When it comes to bankruptcy and divorce, you will also need two separate lawyers to help keep things in perspective. If you are getting ready to file for bankruptcy, contact us today.