If you and your spouse have decided to end your marriage in Florida, you may well be concerned about your financial health. In fact, many couples who get divorced find themselves under serious financial stress and this stress may even have contributed to the failures of the marriages. Depending on the severity of your money problems, you might want to think about filing for bankruptcy. But, before you do anything you should carefully evaluate the timing and how a bankruptcy might impact your divorce.
As explained by My Horizon Today, there are two primary types of consumer bankruptcy. In a Chapter 7, debts are completely eliminated but this may also mean that some assets such as homes are lost. This is because in a Chapter 7, secured assets are subject to seizure in an effort to repay at least some of the debt owed. In a Chapter 13, you may be able to keep your home but your bankruptcy could last as long as five years, keeping you tied to your spouse longer than you wished.
Your set of assets and debts coupled with your income and desire to keep things like a home, for example, will all factor into whether or not you should file for bankruptcy before you get divorced or the other way around.
If you would like to learn more about how you and your spouse might best approach mounting debt when simultaneously facing a divorce, please feel free to visit the financial challenges and marital dissolution page of our Florida family law and divorce website.