The emotional well-being of both partners should be your main concern when going through a separation. It can be difficult to separate your lives while trying to pay off joint debt.
Filing bankruptcy while you are separated can help with debt relief and make it much easier to divorce or get a divorce.
- Temporary separation and legal separation are two distinct things. Couples should understand how each affects their chances for debt relief.
- California offers legal seperation as an alternative to divorcing. For couples that are still struggling financially or concerned about their children’s future, legal separation may be the best choice. Both partners might admit that they are unable to separate their familial and financial ties.
- A legal separation can put partners in a safer position than an informal separation. To determine financial responsibilities, the court is called in. The court divides property and assets.
While legally separated, you can file for bankruptcy. It is not clear if bankruptcy will resolve your debt problems.
Although filing bankruptcy will typically involve only your personal debts and assets alone, your spouse might not be able to file bankruptcy under Chapter 7.
Summarized from an article by Law Offices of Steers & Associates.
