Talking Divorce with Your Long Island Bankruptcy Lawyer

This isn't a topic we like to discuss, but we've seen it far too often not to bring it up — divorce and bankruptcy walking hand in hand. Talk to any Long Island bankruptcy lawyer and you're sure to hear that he or she has seen far too often the strain poor finances can take on a marriage, leading to a rift that's gone beyond any hope of reconciliation.

On the other hand, we've also seen individuals who need to file bankruptcy because of the disaster their finances as a result of divorce.

If your finances are failing and you and your spouse are considering divorce, we strongly advise that you speak with a Long Island bankruptcy lawyer before your divorce is finalized. Why? Because your divorce settlement could well have a huge affect on what you can't and can do in a bankruptcy.

For example, if your divorce agreement includes a "domestic support obligation" (also known as a DSO), you'll want to know if your DSO is "dischargeable" — if you won't have to pay it once your divorce is final. DSOs can range from alimony, property settlement agreements, and so on. DSOs usually are not dischargeable.

However, if your DSO comes about as part of a property settlement, it could be dischargeable. If your DSO is considered to be "support," it's probably not dischargeable.

You also should know that if you file bankruptcy while you're in the process of divorcing your spouse, the bankruptcy court may "stay" your divorce proceeding from determining how your property will be divided. As you can see, this can greatly affect how your property will be distributed in your divorce settlement — even if you and your spouse want to divide your assets together amicably! You can see how critical it can be to meet with a Long Island bankruptcy attorney before — or very soon after — you file for divorce.

As awful as your financial and personal situation may be if your pursuing divorce/bankruptcy, we strongly advise that you take the time to speak with a Long Island bankruptcy attorney before trying to do both — divorce and file bankruptcy — at once. Our Long Island law firm, Blutter & Blutter Attorneys at Law, is here to help you decide the best course of action for your situation. Contact us today for to set up a free, initial consultation with one of our attorneys. We look forward to serving you!