When married couple embark on the path to separate their lives there is much to consider. Custody, finances, living arrangements and the division of assets are all important areas of resolution. In many cases, having these aspects divided and agreed upon before the divorce hearing can be beneficial for both parties. In the same light, if bankruptcy is on the horizon having it filed prior to a legal separation could be the easiest path.
An Ohio bankruptcy case can be complicated by any number of matters, divorce being one of them. Filing for bankruptcy prior to a divorce hearing could be helpful if the majority of debts are jointly held, meaning both parties are responsible. Filing for bankruptcy on a jointly held debt after a divorce could leave the non-filing ex-spouse 100% liable for the debt.
As part of a divorce hearing all debts and assets will be assigned to the dividing parties. Filing for any debt obligations prior could ensure that any remaining divisions of such accounts are fair; whereas an after-the-fact filing could leave the burden on one party unfairly. Similarly, secured assets that are divided in a divorce could be susceptible to repossession if the filing ex-spouse were to file after the divorce hearing.