Many marriages ultimately fail for one overarching reason: money problems.
When you and your spouse have been stressing about debt and fighting about money, it can tear your marriage to pieces and leave you both impoverished.
As to whether to file before or after, and whether to file jointly or as individuals, that has a lot to do with your personal situation.
As a married couple, you are entitled to “double exemption” if you file for bankruptcy in New York, while waiting until after the divorce means you’ll have the the standard exemptions available.
If you own a lot of assets, the double exemption rule can make a big difference for you.
Filing for bankruptcy before a divorce can also simplify the negotiations by eliminating debts that would otherwise have to allocated between the parties.
There are drawbacks as well, though. For instance, when you file for bankruptcy, an automatic stay goes into place preventing collection actions against you, and that would include orders related to the distribution of assets in your divorce.
If your bankruptcy ends up taking longer than expected, it can delay your ability to divorce.
The attorneys at Zelenitz, Shapiro & D’Agostino understand how complicated money matters are when it comes to divorce.
Our attorneys can help you assess your situation and make the best choice for yourself when it comes to divorce and when and whether to file for bankruptcy.
Call us today at 718-523-1111 for a free consultation with an experienced Queens divorce lawyer.