While people enter into a marriage with love and hopes, the financial realities of merging two households may stress the relationship. If the stresses build up, it can cause a couple to consider filing for divorce, bankruptcy or both. If you are considering to file for bankruptcy while getting divorced, what is the best order of filing: Do you get divorced, then file for bankruptcy, file for bankruptcy, then get divorced, or file both at the same time?
A married couple can file a joint bankruptcy, potentially saving thousands of dollars. In Connecticut a married couple actively pursuing a divorce are still married until the court formally dissolves the marriage by Judgment, thus the couple qualifies to file a joint bankruptcy. Once Judgement enters in the divorce proceeding, the parties are single and will have to file separate bankruptcy cases. This will double the cost for attorney’s fees and court costs and possibly more. It is always important to speak with both a Connecticut bankruptcy attorney and divorce attorney prior to filing bankruptcy.
In addition to saving money, a joint bankruptcy has the potential to assist the divorce process. If both spouses are discharged of their joint and individual debts, there is less to negotiate or ask the Judge to decide concerning allocation of debts in the divorce. This may even allow for the couple to proceed with an uncontested divorce potentially saving thousands of dollars. This is in addition to the savings of only filing one bankruptcy. Maybe even more beneficial is the toll this can save on the emotional stress that comes with divorce and negotiating a division of debts.
Before deciding to file a joint or individual bankruptcy prior to the divorce judgment entering, it is crucial to consult with your divorce attorney. While there can be many financial and personal benefits to filing bankruptcy while still married, there are sometimes circumstances that make the opposite true. No two bankruptcies or divorces are exactly the same.
Some couples are so angry and emotionally driven that bringing them together in a joint bankruptcy case may fan the fire and make it more difficult to negotiate other aspects of the divorce, like custody and visitation. A divorce attorney will also have to decide the impact that discharging debts has on division of assets and alimony.
The potential factors that have to be considered are endless and specific to each couple’s case. Filing bankruptcy prior to judgment of divorce entering has valuable benefits, but it is important to have a Connecticut bankruptcy attorney and divorce attorney thoroughly review your specific circumstances prior for making the final decision.
The Law Offices Of Bellenot & Boufford, LLC have more than 26 years of experience and are qualified to help you make the correct decision.
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