Financial struggles and relationship strife often go hand in hand. Disagreements over money are one of the leading causes of divorce, and divorce often leads to bankruptcy. If it has become clear you should file for both bankruptcy and divorce, which should you pursue first? Here, John D. Wieser, Esq., PC, a seasoned bankruptcy attorney, provides some insight on the subject.  

When It Makes Sense to Declare Bankruptcy First

If you and your spouse are on fairly good terms, it may be in both of your best interests to declare bankruptcy before filing for divorce. This will allow you to split the filing costs and bankruptcy attorney fees. It may also grant you double exemptions in certain scenarios, which could protect your financial health in the long run. Additionally, discharging debt first will simplify the divorce proceedings because you can divide any exempt assets during the bankruptcy process. 

When Divorce Should Come First

If you want to declare chapter 7, it may be necessary to file for divorce first. Individuals who exceed the maximum allowable income by filing as a couple may meet the financial requirements alone after the divorce has been finalized. When it comes to chapter 13, you should file for divorce first if you do not want to restructure the payment plan later. Those who file for chapter 13 and then opt to end their marriage must either cancel or modify the repayment plan when dividing assets and liabilities during the divorce proceedings. 

If you need a divorce lawyer or bankruptcy attorney—or both—in New York, turn to John D. Wieser, Esq., PC. With offices in Rochester and Getzville, this full-service firm is proud to assist clients with everything from foreclosure to family law disputes. Attorney Wieser and the rest of his compassionate team are committed to helping clients achieve satisfactory outcomes to even the most complicated legal proceedings. Learn more about the firm’s bankruptcy and family law services by visiting their website. To schedule an initial consultation with a bankruptcy attorney, call (585) 328-0660.