Does Bankruptcy Affect My Divorce Property Settlement?

Careless drafting of a final divorce settlement could put you at risk of losing the settlement when your former spouse subsequently files bankruptcy.  Did you know that a property settlement labeled “alimony or support” cannot be discharged in bankruptcy?  Did you know that if the settlement is labeled “property settlement” your spouse could subsequently discharge the obligation to pay you through a bankruptcy filing? Since, people going through divorce frequently have financial difficulties, the threat of bankruptcy is a real one.

Careful divorce-planning attorneys are certain to make every effort to label future obligations as alimony or support, where possible, in order to minimize the bankruptcy discharge risk.

Call us at Normand & Associates for a free phone consultation today.

Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.