A divorce is a very difficult time for everyone. There are emotional issues swirling around. There is money that is being spent on attorneys and courts. However, there is one more thing to consider: how to split up the stuff.

 

Community Property

It is commonly known that in California, all property acquired during the marriage is presumed to be community property. That means that even if you have no intention of getting a divorce, a bankruptcy could factor in the spouse's income or assets, even if that spouse is not even filing bankruptcy. However, if the couple is divorcing, property issues are always a concern: who gets the house? the car? the art or baseball card collection?

 

Community Debt

What people don't always think about is: who gets the debt? Of course, that debt that you acquired during the marriage is also shared, even if it was the credit card account of the other person. You don't want "his" or "her" debts to follow you around forever. What if they stop paying those car payments? What if he decides the credit card payments are just too high and defaults?

 

Debt of the Other: Prenups

Ironically, this community debt and community property concept is the same principle behind why some clients with bad credit are encouraged to file bankruptcy before they get married so that it's not a problem for their new spouse. A bankruptcy can be a good thing to do before a wedding along with that prenuptial (prenup).

 

Ditch it, Don't Split It

One good solution, then, is to have a bankruptcy take care of the loose ends, put some finality on the situation so that "his" or "her" junk from the past does't follow you into your new life without them.

Contact us today so we can help you put the past behind you, once and for all.

| 26.08.2006 | Print |