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Balancing divorce and bankruptcy

On Behalf of | Sep 1, 2018 | High Asset Divorce

If you and your spouse are contemplating a divorce in New Jersey, you may also be facing serious financial problems. This is not an unusual situation as it is commonly known that money can be a major contributor to marital strife and even to the irrevocable breakdown of many marriages. But, what are you supposed to do when it seems that bankruptcy may be the best way for you to handle your debt relief needs? 

My Horizon Today provides some insight into how couples might choose to address a bankruptcy and divorce when they seem to arise at the same time. One of the first things you will want to ascertain is the ability of you and your spouse to collaborate on a solution to your financial problems. If you feel you can communicate about this issue effectively, it may be possible for you to file for a joint bankruptcy prior to getting divorced. If, however, such collaboration is not an option, you may be better served by completing your divorce first.

You should also carefully assess your assets and debts so you can understand the type of bankruptcy that may best benefit you. Chapter 7 and Chapter 13 bankruptcies have different uses based on your needs and these may also play into the timing of your bankruptcy relative to your divorce.

If you would like to learn more about how to balance challenging financial and debt relief needs with a divorce together, please feel free to visit the bankruptcy and marital dissolution page of our New Jersey family law and divorce website.