What Leads Spouses Filing For Bankruptcy After Divorce, and How is it Avoided?
Divorce is an ugly thing. They can be quite relieving, but this is pretty hard to find when there are so many lingering financial issues still up in the air. So how do people end up in these situations? Even if someone is close to having them happen or currently going through them, what can they do starting now to avoid any future disasters in Filing For Bankruptcy?
Surface Hidden Accounts
A divorce can be a competition in who can keep as much of their own money as possible. Now this is a bit misguided and unfair, but it is unfortunately common. Try to surface any potential hidden accounts and income that the other spouse may have. This could include an additional savings account, cancelled checks, or tax returns that are not reported in the divorce case. A strategy to surface these items is to have the lawyer to a credit review in history of the other spouse. Always try to have records that go back five years. If one spouse is willing to do it, the other should as well. If not, the bankruptcy lawyer will strive to obtain the same.
Monitor Assets Closely
To avoid bankruptcy in the years after divorce, all assets should be closely monitored. A lawyer used in the actual divorce would be a great asset to keep after it is all over. They may have someone to handle future proceedings, or recommend someone they know personally. Either way, surprising taxes could crop up here and there that can affect future income. Capital gains is a sneaky one that is taxable income earned asset management.
There is a white elephant in the room that needs to be addressed. Sometimes, bankruptcy cannot be avoided after divorce. There’s simply too much damage done and the other spouse may be too unreasonable. A Filing For Bankruptcy lawyer will address these concerns and focus first on joint accounts and getting them closed as soon as possible. The goal and the divorce situation is to break the mends that tie one former spouse to the other. This is the only way to properly heal both emotionally and financially.
Visit Massbankruptcy.net for further details.
