The spouse receiving support should try to maximize the amount of domestic support vs. a property settlement in a divorce decree.
Persons going through, or contemplating, divorce should do some planning with their family law attorney if they believe they will be receiving child support or spousal support as a result of the divorce. Recent changes to the bankruptcy laws make domestic support a much more attractive option than a property settlement.
If the divorce decree has a significant property settlement within it, the property may be at risk if the former spouse files for Chapter 7 bankruptcy protection. While you may each own half of the property, if your spouse files for a bankruptcy liquidation, the bankruptcy trustee can liquidate their ownership interest in the property, which may force you to raise cash in a hurry or sell the property to satisfy the creditor who will now be pursuing the entire debt from you. To decide what is best for you, please consult an attorney.
By contrast, domestic support is not dischargeable in bankruptcy. So if your spouse files for bankruptcy, it does not remove the child support or alimony payments. The 2005 bankruptcy reform law moved domestic support to the front of the creditor line to ensure that bankruptcy laws were not used to shirk responsibility for domestic support obligations.
Your family law attorney can guide you through the property settlement process to ensure that you receive the best possible settlement for you and any children that you may have. If necessary, your attorney can consult with a bankruptcy attorney to ensure that your settlement will stand up to a bankruptcy filing by your spouse.
If you have a question regarding Family Law in Los Angeles County please contact us at (818) 926-4420 or visit the Family Law section on our website at Law Offices of Anat Resnik. Call today and we will connect you with Anat Resnik, an experienced, aggressive, affordable Divorce and Family Law Attorney in Los Angeles County. After you have spoken with our Los Angeles County Family Law attorney, we can schedule you a free face to face appointment to discuss your circumstances. If you have questions or are considering any aspect of filing for Divorce, a Paternity issues, Child Custody and Visitation, Spousal Support & Alimony, etc. we can help! Call us now at(818) 926-4420. We look forward to hearing from you and assisting you with any and all family law needs.
