Divorce

When you realize that you are on the verge of going broke, you ask yourself if it is the right moment to declare yourself bankrupt. There is no “right moment” for such choice but you might want to consider this option when bills begin to pile up and notices for mortgage and loans foreclosures start coming in succession. Other significant considerations might be the difficulty to allocate payments to get out of debt within five years, or the loss of job or any other source of income. A costly illness or a divorce can also render a major financial setback.

Filing for bankruptcy involves a complicated legal process but could assist you in your financial recovery though it cannot liberate you from your non-dischargeable debts and priority claims such as alimony, child support, taxes, student loans, debts, and more. More often than not, bankruptcy and divorce go together. Filing for bankruptcy is further aggravated when you are also facing divorce proceedings where the latter also involves the division of assets and debts between you and your spouse. It influences your life particularly your property and personal finances. When one or both spouses file for bankruptcy, all the community property acquired during the marriage becomes part of the bankruptcy estate to pay debts.

It is wiser that you file bankruptcy first before going through the divorce process because negotiations on debt and asset division are easier. It also provides protection from debts and support if and when your spouse files for bankruptcy separately. However, filing for bankruptcy together would benefit both spouses because dischargeable debts are eliminated to provide you more money for support. The divorce is also simplified with the elimination of the family debt.

Divorce is never easy and neither is it pretty. The process is so stressful with all the legal, financial, and emotional stages. It is a decision that would certainly affect the life of every individual who engage in this legal action. Understanding your legal rights, the process, and the emotions will help you go through the course of this traumatic experience.

Basically, a divorce is a legal process of dissolving or terminating a valid marriage. With its purpose, it could be granted when the parties and the court decide on issues such as alimony, property division, child support, visitation time, and child custody, where the parental rights and responsibilities are assigned to one of the parents known as the residential parent. The allocation of property is usually based on the property acquired during the marriage, or what is called marital property. These properties include family home, pensions, bank accounts, and family business, even if it is held in the name of only one of the parties. If the spouses cannot reach an agreement on these issues, the spouses may go to trial for resolution, or go for alternatives that include mediation, arbitration, and collaborative divorce.

In the past, there was only “fault” divorce, where one spouse charges a marital misconduct such as adultery, abuse, or mental cruelty. Now for every state, there is a no-fault divorce, although the divorce law varies from state to state. No-fault divorce allows the legal process to be granted when one spouse states that the marriage has broken down, or that the marriage is irretrievably broken.

Although one of the most emotional experiences one will ever face, divorce need not be as traumatic and distressful. It is in the family’s interest, especially if children are involved, if the divorce process is approached in a way that will spare everyone a great deal of heartache and save the parties time and money. This is where a good lawyer that specializes in family law will be of great assistance to help you deal with the situation from a clear and objective perspective.