Denver Family Law Attorney explains how to protect your financial interests in a divorce if you think your spouse may later file for bankruptcy protection.
If you are going through a divorce, you may be better served by seeking more spousal support and child support, and less physical property, in the property settlement if you suspect your spouse may be considering filing for bankruptcy. The advantage to you is that domestic support obligations are no longer dischargeable in bankruptcy. So even if your spouse files for bankruptcy, the spousal support and child support obligations do not go away.
Property settlements, however, can be discharged in bankruptcy. Even worse, they can come back to bite you if your name is on the loan document when your former spouse files for bankruptcy. In that event, the lender may come after you for the entire amount owed, instead of just the part that was awarded to you in the property settlement.
Bankruptcy courts have the task of determining what is considered support and what is a property settlement. Some of the criteria they use include asking:
- Does the obligation terminate or reduce with the occurrence of certain events, like remarriage or a child turning 18?
- Is the obligation in installments or a lump sum?
- Are there minor children?
- What is the relative health and education of the parties?
- Was there a need for support at the time of the divorce?
If you are looking for a Denver bankruptcy lawyer or a family law attorney, Cohen & Cohen law firm serves the Denver area for both of these legal fields. Cohen & Cohen law firm has helped families in Denver the last 8 years. Cohen & Cohen will protect your rights with firm and just legal services when you need legal help in such areas as Denver Bankruptcy, Divorce/Family Law, Civil Litigation, Consumer Litigation (including FDCPA & FCRA violations), and our general practice areas of Estate Planning, Contract Drafting, Colorado Real Estate and Real Property issues, and formation of Corporate Entities.
