Divorce and Bankruptcy
Transcript
A.J. Grossman: In this video, I’m going to talk about divorce in Florida and bankruptcy.
Hi, everybody! I’m A.J. Grossman, divorce lawyer and owner of Leap Frog Divorce.
Some of my clients come to me seeking a divorce while they’re also going through bankruptcy or considering filing for bankruptcy. They want to understand how bankruptcy could affect their divorce and how their divorce could affect their bankruptcy.
For more than a decade, I’ve focused my practice exclusively on family law, including divorce and paternity cases. I don’t practice immigration, criminal law, personal injury, or bankruptcy law.
When a client is considering bankruptcy or is already involved in a bankruptcy case, I find out who their bankruptcy attorney is or help connect them with one. That’s because there are important considerations when navigating divorce and bankruptcy at the same time.
Does a Divorce Settlement Make You Responsible for Your Spouse’s Credit Card Debt?
One of the most common questions I receive is this:
“If my divorce settlement agreement says my spouse is responsible for certain credit card debts, and they don’t pay, can the credit card company come after them instead of me? Am I off the hook because our divorce agreement says they have to pay?”
The answer is generally no. A divorce settlement agreement does not automatically prevent a creditor from pursuing someone who remains legally responsible for the debt.
Why? Because your divorce agreement generally governs the obligations between you and your spouse. It doesn’t automatically change the rights of a third party, such as the credit card company that issued the card.
For example, if both spouses are legally responsible for a credit card account, the credit card company may be able to pursue either or both of them for the debt, even if the divorce settlement assigns responsibility for making the payments to just one spouse.
The creditor is not automatically bound by the agreement between you and your spouse.
This means that even if your spouse agrees to pay a particular credit card balance as part of the divorce, you could still face collection efforts if you’re legally responsible for that account and the payments aren’t made.
Should You Speak With a Bankruptcy Attorney During Divorce?
If you’re concerned about debt during your divorce, it may be worth consulting a bankruptcy attorney to understand your options.
This is especially important if you’re already considering bankruptcy or are involved in an ongoing bankruptcy case. The timing of your divorce and bankruptcy, your financial circumstances, and the types of debts involved can all affect your options.
If you don’t already have a bankruptcy attorney, I can help connect you with an experienced professional. Your bankruptcy attorney and I can coordinate to help develop a strategy that considers both your divorce and your financial situation.
Divorce and bankruptcy involve different legal issues, so it’s important to understand how decisions in one process could affect the other.
I hope you found this video helpful. If you did, please like and subscribe. I’m releasing new videos all the time.
Thank you so much for watching. Have a wonderful day, and be well!
