Jan
27

Should I File For Bankruptcy Before I File For Divorce?

The divorce rate in Ketucky was viewed as above average back when it was 0.013%, or roughly 13 out of 1,000 people.  

Climbing up to 33% higher than the national average, the Kentucky divorce rate may soon have an effect on a couple’s advantages of filing for bankruptcy.

Can couples really save themselves money by filing for bankruptcy before they file for divorce?

In today’s economy, this is becoming more of a practical option then waiting until the divorce is finalized.  It’s no wonder that couples are choosing to file for bankruptcy before divorce.  Practically speaking, it does make more financial sense.  

After the divorce, neither party may wish to keep the house, but it’s eliminating the debt that is of most interest.  During divorce, debt is divided just like property and other assets.  divorce in Northern Kentucky

It’s a protective strategy for many couples, who can eliminate the risk of carrying on their ex’s debt well after the divorce and it also gives them a fresh start.  

Remember if you file for bankruptcy before filing for divorce:

  • All property bought during the marriage is included in the estate and the value of it is used to pay off the debt you owe as a couple.
  • You may file for divorce during the bankruptcy process.
  • Some property may be deemed exempt by the courts, meaning that it cannot be included as funds toward your debt and instead is divided evenly amongst you both. 
Filing for bankruptcy during divorce requires that you and your spouse follow the various laws set forth by the state.  Take the time to talk to your Northern Kentucky divorce attorney by asking these questions:
  • Can I force my spouse to file for bankruptcy even if he or she doesn’t want to?
  • Should we file jointly and hire separate lawyers?
  • How do we agree on the division of the debt? 
  • How should we divide the exempt property?
Talk to your Northern Kentucky divorce lawyer before making any of these types of decisions.  We’re offering you a FREE case analysis at no cost, so schedule your appointment with us today.  You can also visit our Frequently Asked Questions page and read further information on divorce.  

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