Consider your options very carefully regarding divorce and bankruptcy.
While both to some degree serve similar purposes, aspects of both niches
are completely different. Bankruptcy is obviously about debts, whereas
divorce is about distribution of debts, property, assets, children and
support. Bankruptcy can streamline issues of due
process and even calm some emotions down when it comes to divorce, but
in no way does it make divorce move a lot smoother. In actuality, it can delay it.
According to the bankruptcy code, automatically the filing can "halt"
a divorce action. It's part of bankruptcy law. Think of it as a way
of trumping divorce law. They call it an "automatic stay," in
fact, where the action of filing for bankruptcy must first be resolved
before even going through with a divorce. Of course, a soon-to-be divorced
couple may obtain permission from the bankruptcy court to continue on
with the proceeding of a divorce, but it's not a guarantee, especially
if there's a great deal of debt to consider between the two parties.
It is true, however, that non-financial issues can continue on as part
of a divorce proceeding. That can involve child custody, living arrangements
and even changing the last name. Issues regarding spousal support, though,
can't be resolved until the issue with bankruptcy has been finalized.
Even child support, though, can continue as recorded by friends of the
court and other child support enforcement units given the fact that technically
child support payments are not dischargeable under bankruptcy law. Bear
all of that in mind as you consider filing for bankruptcy during a divorce.