Divorce in a Bad Economy

The economic downturn has changed the face of divorce negotiations. An imaginary discussion in divorce mediation might sound like this:

Spouse 1: “The house is worth a lot of money. If you want it, you should pay all the credit cards.”

 Spouse 2: What are you talking about? The house is upside down by $80,000. And I can’t afford to pay the credit cards on my own. Besides, your name is on them.”

Spouse 1 and Spouse 2: “We tried to get rid of the house but no one wants it. It has been on the market for a year with no offers.”

The latest economic crisis has made it difficult, if not impossible to walk away from the bargaining table with money in hand. For many years, the major asset in any marriage was the marital home. Frequently, the home could be sold for a substantial profit and both spouses received money to help them start a new life. Now, the major question is: Who will receive the greater share of the liabilities? Instead of money in hand, now each spouse has a percentage of a deep financial hole.

Some divorce clients are now looking to combine various legal options, such as bankruptcy and divorce. With proper planning, a divorce client can end up with a clean slate and a new life. The trick is to plan ahead, gather knowledge, and prepare your strategy. As part of this process, divorcing spouses should always consult with a bankruptcy attorney.

One common strategy: check if your income level qualifies you for a Chapter 7 Bankruptcy Filing. Chapter 7 Bankruptcy is the most common form of Bankruptcy and results in a complete elimination of all of your credit card debt. It is important you learn about the exceptions in Chapter 7. Once you verify your eligibility for Chapter 7, you are free to negotiate acceptance of most (if not all) of the marital credit card debt. If you take the credit card debt, your spouse will be more willing to give you other concessions. If properly planned, you have the security of knowing your credit card debt will be discharged in Bankruptcy.

There are many exceptions and rules to deal with. It is important to learn and plan. At The Divorce Center we do sell our services – but we also try to empower clients to take control of their own situation. Read through our website thoroughly. But then you should take advantage of our flat fee divorce consultation. We can discuss various standard and low cost divorce services, and also educate you on how to combine a Bankruptcy for maximum benefit.

 

 

   The Divorce Center is a team of lawyers devoted to divorce, support, and custody issues. We practice in West Central and Central Florida with soon to be opened offices in Orlando, Kissimmee, and Miami, Florida. CONTACT US NOW or call 888-469-3486

    

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