Filing for an uncontested divorce is a great way to streamline the divorce process and help you and your spouse move on more quickly. It’s ideal for spouses who are already in agreement on the terms of the divorce and who are confident in their ability to negotiate throughout the process. But if your spouse files for bankruptcy during your uncontested divorce, things can get a little trickier. Here’s what your Virginia uncontested divorce lawyer wants you to understand about bankruptcy and your pending divorce.
Bankruptcy Can Impact Your Uncontested Divorce in Virginia
Bankruptcy helps you discharge your debts and start over financially. But when your spouse files during a divorce, it can impact a few of the terms in ways you may not be ready for. Here are a few common ways that filing for bankruptcy can impact your divorce.
Alters the Division of Assets
The division of assets can be one of the most difficult parts of a divorce. And if your spouse files for bankruptcy before your divorce is complete, their bankruptcy filing can impact the division of assets. Remember, when you file for bankruptcy, some of your assets can be used to settle outstanding debts.
Depending on the circumstances and how you and your spouse divided property during your marriage, the bankruptcy court could determine that some shared assets need to be used to settle your spouse’s debts.
Impacts the Division of Debts
Though many people focus on the division of property during an uncontested divorce, you also need to divide your debts. Depending on the bankruptcy, some of the debts you and your spouse would otherwise need to divide could be discharged. That means neither of you would have to make payments.
May Influence Alimony and Child Support Amounts
Though the court can still require your spouse to pay for alimony and child support, the bankruptcy could possibly impact the amounts you’ll receive. Remember, these payments are largely based on your spouse’s income. If they file for bankruptcy during the divorce proceedings, the amount of alimony or child support they can afford to pay each month may be lower than either of you would like.
That’s not to say that your spouse can’t start contributing more once their income increases. They can. It just means the amount you’ll receive initially may not be as high as you’d find comfortable.
What to Do if Your Spouse Files for Bankruptcy
If your spouse is considering filing for bankruptcy in the middle of your uncontested divorce, don’t wait to see how things go. Let your Virginia uncontested divorce attorney know what’s happening as soon as possible. The sooner you do, the sooner they’ll be able to explain how the bankruptcy may impact your divorce and which options you have to ensure that the divorce concludes on terms you and your spouse can agree on.
Schedule a Consultation Today
If you’re considering an uncontested divorce, you’ll want to work with an experienced attorney who understands the process and who can help you navigate it. Contact AC Rieman Law today to schedule a consultation with an experienced Virginia uncontested divorce lawyer.