Hey all, I’m in the middle of a divorce, and I’m wondering… can my husband declare bankruptcy during the process? He has a lot of debt tied to his business, so I’m not sure how that would work. Also, would this affect what I can get in the settlement? Any insights would be super helpful!
I think he can file for bankruptcy even in the middle of a divorce. But business debt usually stays separate from personal debt, right?
RobertGabriel said:
I think he can file for bankruptcy even in the middle of a divorce. But business debt usually stays separate from personal debt, right?
That’s what I was thinking too. He has some assets like a car and jewelry, so I’m not sure if those are safe from bankruptcy claims or not.
RobertGabriel said:
I think he can file for bankruptcy even in the middle of a divorce. But business debt usually stays separate from personal debt, right?
If he tries to hide assets, like jewelry, you can request all his records. That’ll show if he’s got other stuff.
When I went through my divorce, my ex tried to claim bankruptcy. Just FYI, if he has a 401k from his job, you might still get half of that if it was earned during the marriage.
Reed said:
When I went through my divorce, my ex tried to claim bankruptcy. Just FYI, if he has a 401k from his job, you might still get half of that if it was earned during the marriage.
Oh, that’s good to know! He’s part of a union, so his 401k is set up through them. I’m glad that might still be on the table.
Reed said:
When I went through my divorce, my ex tried to claim bankruptcy. Just FYI, if he has a 401k from his job, you might still get half of that if it was earned during the marriage.
Wait, does his union 401k count as business stuff? Not sure if that makes it off-limits in a bankruptcy case.
If he owes the IRS, that debt won’t just go away. They might garnish his wages eventually, but that could take time depending on his income situation.
Teegan said:
If he owes the IRS, that debt won’t just go away. They might garnish his wages eventually, but that could take time depending on his income situation.
He doesn’t get a steady paycheck, just takes money from his business when he wants. I worry this means it’ll be harder for me to get support payments.
Teegan said:
If he owes the IRS, that debt won’t just go away. They might garnish his wages eventually, but that could take time depending on his income situation.
Yeah, if he’s paying himself, that could be tricky. You might need to get a temporary order for support in the meantime.
Does your lawyer know about his spending habits? If he isn’t keeping business records, it’ll make his bankruptcy case messy. No records means it’s tougher to prove he’s truly broke.
Thorn said:
Does your lawyer know about his spending habits? If he isn’t keeping business records, it’ll make his bankruptcy case messy. No records means it’s tougher to prove he’s truly broke.
I’m letting my lawyer know everything, and he doesn’t keep great records. My credit has tanked since he stopped paying our bills too.
Thorn said:
Does your lawyer know about his spending habits? If he isn’t keeping business records, it’ll make his bankruptcy case messy. No records means it’s tougher to prove he’s truly broke.
Yikes, that sounds rough. You might want to ask for a temporary order to keep him paying the usual bills until it’s settled.
If he can’t file for bankruptcy for spousal support, you should be safe there. But yeah, with all his finances tied to the business, a temporary support order might be a lifesaver.
Alayna said:
If he can’t file for bankruptcy for spousal support, you should be safe there. But yeah, with all his finances tied to the business, a temporary support order might be a lifesaver.
I didn’t realize a bankruptcy couldn’t get him out of paying spousal support. That’s a relief!
Alayna said:
If he can’t file for bankruptcy for spousal support, you should be safe there. But yeah, with all his finances tied to the business, a temporary support order might be a lifesaver.
Totally. You just need to get a court to lock that down if he’s already trying to cut back on paying things.