Imagine being in the middle of your divorce and hearing that your spouse filed for bankruptcy. This can be disheartening, especially given the nature of your unique situation and wanting to ensure you receive everything you are entitled to. While divorce and bankruptcy don’t occur often in Texas divorces, it can still happen. Most attorneys recommend that their respective clients file for bankruptcy before or after the divorce. However, a soon-to-be ex-spouse might choose to weaponize their bankruptcy to exact revenge or exercise control over the other spouse.
Divorce and bankruptcy each have their own rules, and combining the two can make it tricky to figure out who owes what and who keeps which assets. Here’s a look at what you should know if this happens to you.
Divorce and Bankruptcy: How Does Bankruptcy Affect Divorce in Texas?
In Texas, filing for bankruptcy can trigger an “Automatic Stay” that pauses divorce proceedings—temporarily halting the division of debts and assets. Since Texas is a community property state, most marital assets and debts are split fairly. However, if one spouse files for bankruptcy, the divorce court must wait for the bankruptcy court’s decision.
As you can see, bankruptcy impacts divorce significantly, especially when dividing assets like a home or retirement accounts. But can filing during a divorce also affect child support and spousal maintenance? Thankfully, like federal law, Texas law makes child support and, in many cases, spousal maintenance “Priority Debts,” meaning they generally can’t be discharged or erased in bankruptcy. If you’re due child support or spousal maintenance, the bankruptcy court will usually still require your spouse to make these payments.
Should your spouse file for bankruptcy during your divorce, the next step is to talk to a family law attorney who also understands bankruptcy. Texas has special rules for handling shared property in these cases, so help is essential. A good attorney can explain how bankruptcy affects Texas divorce laws and help you protect your finances and plan for what’s next.
You can handle this challenging situation of divorce and bankruptcy with the utmost confidence and proper support.
Please Call Christman | Daniell for Your Legal Needs Today!
Are you looking for family law services in Tarrant County, Texas? Christman | Daniell is your premier choice. With years of experience and a deep understanding of the legal landscape, our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell. We provide compassionate and effective representation for all your family law needs.
Please consult an attorney for advice about your situation. The material on this website and in this or any blog article we publish are for informational purposes only. They do not constitute legal advice. The attorneys at Christman | Daniell believe in tailoring legal advice and solutions to your circumstances.
We have an unwavering commitment to helping our clients at each stage of their legal situation.
