Divorce and Bankruptcy

We always advise our clients to first file bankruptcy and then if need arise, to file divorce. A divorce before bankruptcy complicates things, and a bankruptcy prior to filing divorce is a prudent matter as this divides the property more amicably than in a typical divorce courts where emotions run very high.

As we know, divorce is the end of marriage, but it is not the end of many things including liabilities and obligations, which sometimes outlast the marriage itself.

Nevada is considered a community property, which means both husband and wife are responsible for each other’s debt after marriage, and sometime prior to marriage if they were acquired, payments made, or improvements done on the joint or even separate property. A separate property is the property, which is acquired prior to marriage by each spouse and kept that way without any transformation. A joint property is property, which is jointly acquired during marriage or even if acquired in individual’s spouse name during marriage. Bankruptcy can have devastating effect on the non-filing spouse. Sometime, it is prudent to keep one spouse outside bankruptcy but such decision should be made with the consent and advice of an attorney who know such tricky and complicated matters. In addition, one should know that only one spouse filing of bankruptcy can leave the non-discharged debt to the other spouse. Sometime, it can be used as a vendetta against the other spouse. As such, an advice from a helpful attorney is important and can be very helpful in such divisive issues.

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1 Comment

  1. Pingback: Divorce and Bankruptcy « Las Vegas Bankruptcy Blog of Attorney … | Attorney in Las Vegas

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