Three potential benefits to bankruptcy before divorce

If you are like many spouses in Pennsylvania who is considering getting a divorce, you and your partner may be experiencing serious financial problems. Like it or not, money woes and marriage woes all too often go hand in hand and it may even be impossible to determine which came first. If your financial issues are extreme enough, you might even consider filing for bankruptcy. Depending on what type of bankruptcy is right for you, there may be benefits to this for your divorce.

As The Balance explains, one benefit of filing for a joint bankruptcy is that you and your spouse together enjoy higher exemption levels. This means you are allowed to keep assets valued up to a higher amount than a person filing for a bankruptcy alone might. This approach may help you avoid losing your home or a car, for example.

Another benefit might be that once your joint debts are eliminated via a joint bankruptcy, your divorce might be simpler. You will theoretically have less debt to distribute between the two of you and therefore may have less to negotatiate. A joint bankruptcy also means you only have to go through one process and pay one set of fees which ultimately can save you money.

If you would like to learn more about how to evaluate your financial and marital situation in order to make the right decisions for you, please feel free to visit the marital dissolution and finances page of our Pennsylvania family law website.

 

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