One of the most common strains on a marriage is money issues. When couples lose the battle to fight for their relationship, divorce may be imminent. If you are planning to file for divorce and are experiencing trouble with paying your debts, there are some things to consider about the benefits of filing before you separate.
Debts In Divorce
The trouble with debt is that it often gets divided as part of the divorce decree. While this isn’t necessarily a bad thing for some, couples experiencing financial trouble could find that the division of debt liability could be problematic down the road; specifically if one ex-spouse files for bankruptcy.
Filing as a still married couple will eliminate the debt burden from both parties and dissolve any further liability over most debts. There are options to file together or separate, but the idea is to erase debt obligations to prevent creditors from attempting to collect down the road. If you were to file for bankruptcy after a divorce, creditors could still attempt to collect from the non-filing spouse. Further, assets that may have been divided as part of the divorce decree could be liquidated from the non-filing spouse down the line.
In general, the transition into separation is much easier on a couple who has resolved their financial obligations prior to signing the divorce papers. Speak to a Houston bankruptcy attorney about how to protect the interests of both parties in a divorce where financial hardship is the center.