Balancing bankruptcy and divorce together

Money is one thing that many marital arguments in New Jersey have been about. In some cases, financial troubles or radically differing approaches to money management and spending can even lead a couple to end their marriage. When spouses with serious financial problems make this choice, they may also be evaluating whether or not to file for bankruptcy. Certainly, a bankruptcy can help provide someone with a path to a better financial future but when it coincides with a divorce, care should be taken to proceed at the right time.

As explained by My Horizon Today, some couples may wish to file a joint bankruptcy prior to filing for their divorce. This may well simplify the debt and even asset division portion of their divorce settlement and give them a clean slate both financially and from a relationship perspective once their divorce is final. However, it does require that couples are able to cooperate sufficiently to provide the necessary financial details and agree on things in the process. This may not be a viable option for a couple in a highly contentious situation.

Also important to evaluate is the best type of bankruptcy for the couple's situation. A Chapter 13 bankrupty may help preserve some assets but it may also keep the couple financially linked for much longer than they wish as these plans last between 36 and 60 months.

Bankrate also adds that couples should investigate the viability of discharging some debts after the divorce decree assigns responsibility for them to one spouse.

 

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