Declaring Bankruptcy Before Divorce

by DeLadurantey Law Office, LLC on July 23, 2010

Many married couples find that their marriages break down when they have financial problems. Unfortunately, many married couples decide to divorce once these problems begin to place a great strain on the relationship. It is important to note, though, that divorce will not resolve a couple’s debts. In many cases, declaring bankruptcy before getting divorce makes sense for married couples.

The Advantages of Declaring Before Divorce

In many cases, a divorce will cause spouses to evenly divide the debts that they incurred during the marriage. When the marriage is over, each ex-spouse will be left to pay off those debts with his or her single-person salary. In most cases, couples who cannot pay their debts together cannot pay them when they are apart either.

Declaring bankruptcy before marriage makes sense for many reasons, including:

  • Couples pay legal fees just once
  • Bankruptcy makes debt division easier
  • Each spouse has a clean financial slate when single

Additionally, in a divorce settlement, debts are not transferred into one spouse’s name; if an individual declares bankruptcy, the creditors he or she was responsible for paying may come after the individual’s ex-spouse since they will still be listed as a co-signer.

Declaring bankruptcy before getting divorced can save individuals money and give them peace of mind in their single lives. If you and your soon-to-be ex-spouse have financial troubles, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC at 413-377-0518 to learn about declaring bankruptcy before you divorce.

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