Divorce and bankruptcy are closely related, especially since many divorces are caused by financial problems. A couple going through divorce should explore if a joint bankruptcy filing is beneficial.
First, a couple must be legally married to file a joint bankruptcy petition. A couple can be separated or living apart and still be eligible to file a joint bankruptcy petition. Bankruptcy can be an excellent tool for both parties to discharge joint marital debt.
If your spouse is unwilling to explore potential bankruptcy options, you can file a petition without your spouse or you can your spouse can file separate bankruptcy petitions.
In Kentucky, domestic support obligations such as alimony and child support cannot be discharged in a bankruptcy. You should be careful not to assume certain liabilities of your spouse in a property settlement agreement. However, back support can be consolidated and paid off through a Chapter 13 bankruptcy.