15 Jun Marital Settlement Agreements and Bankruptcy Proceedings
Marital Settlement Agreements & Bankruptcy
The Florida Bankruptcy process can be an extremely stressful one on families. In some families, the process strains the very fiber that holds the marital relationship to the point that the couple decides to petition for the dissolution of their marriage (divorce). There are many concerns that the Miami bankruptcy attorney may have for the family in this situation.
For instance, let’s imagine that just one of the partners (the debtor) were to file for bankruptcy. Let’s also say that the couple subsequently decided to divorce immediately after the filing. Under Florida law, any property received by the debtor as a result of the dissolution judgment, or as a result of a property settlement agreement with the debtor’s spouse, within the 180 day period immediately following the initial filing of the bankruptcy petition, becomes a part of the debtor spouse’s estate in the bankruptcy proceeding. (11 U.S.C. § 541(a)(5)(B))
Every divorce and bankruptcy petition are riddled with several fact-specific determinations that must be made by your attorney. The number of issues that come up in the filing of the two proceedings within a relatively short time period between each other, or worse – consecutively, are compounded. If you are considering filing for Bankruptcy in Florida and are also considering filing for a Florida Divorce, contact us at +1.786.309.8588 for a Free Consultation.