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Filing for bankruptcy during a divorce can raise issues

While this Ohio blog has discussed situations in which people with lots of income and assets choose to file for a divorce or legal separation, in fact, many other couples at the opposite end of the financial spectrum also wind up splitting with each other. Indeed, as a previous post on this blog discussed, financial problems are one of the biggest factors that play in to Dayton couples' decisions to divorce each other.

It is no surprise then, that bankruptcy may be at the forefront of a couple's minds at the very time in which they are also trying to divide their assets and debts and go their separate ways financially. The details about whether or not an Ohio resident should file for bankruptcy, and the details of how he or she should go about doing so, are best discussed with a legal professional who frequently practices bankruptcy law.

However, from a family law perspective, there are certain considerations a person who is contemplating both a divorce and a bankruptcy should bear in mind. Perhaps, most importantly, a couple should remember that not all divorce-related debts can be discharged in a bankruptcy. For instance, child support, as well as attorney fees awarded in cases related to custody and support, are not eligible for discharge.

Moreover, depending on how a court order in a divorce or legal separation is worded, a bankruptcy may be of limited value to either one or both of the spouses since they will still be expected to follow the court's orders. Finally, certain actions taken in a bankruptcy case can have the unintended result of stalling a pending divorce.

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