For many people, getting divorced can trigger concerns about bankruptcy. Whether financial strains played a role in the deterioration of your marriage or you are worried about meeting your financial obligations once your divorce is final, if you are thinking about bankruptcy, planning ahead and making smart decisions during the divorce process can pay dividends down the line.
Avoiding Bankruptcy During and After Divorce
If you have concerns about your personal finances, you will certainly want to discuss it with your divorce lawyer. While your lawyer will always be looking out for your best interests, if you voice your specific concerns, he or she will be better able to provide advice and representation tailored to your unique individual needs.
Several key considerations for avoiding bankruptcy after divorce in Georgia include:
- Property and Debt Division—Under Georgia law, a couple’s marital property is subject to equitable distribution during the divorce process. The couple’s debts must be divided as well, and the entire process must focus on what is fair—even if fair does not necessarily mean equal. Divorcing spouses have significant leeway to negotiate the terms of their property and debt settlement (although creditors’ claims will generally take precedence over spouses’ agreements), and it may be possible to structure your settlement to help alleviate your financial stress.
- Child Support and Alimony—Whether you expect to receive or pay financial support following your divorce, it will be important to ensure that your child support and alimony awards are consistent with Georgia law. You will want to make sure you receive full disclosure of your spouse’s income, and you should work with your attorney to develop a strategy for protecting your post-divorce finances as much as possible.
- Personal Credit—When going through a divorce, it may be necessary to reestablish your personal credit. Doing what you can to have access to money when you need it (without unnecessarily going into debt) can help you weather financial struggles in the future.
- Costs of Divorce—It is no secret that getting divorced can be expensive, but it does not have to be. Today, several options are available for avoiding the costs of divorce litigation, and it will often be in both spouses’ best interests to work efficiently toward an amicable resolution.
- Financial Planning—Once you know what you can expect with regard to property and debt division, child support, and alimony, it is time to conduct some financial planning. All divorcing spouses should establish a manageable budget that allows them to save for the future, seeking professional help if necessary.
Are You Wondering if Divorce is Your Best Option?
If you are not just thinking about avoiding divorce and bankruptcy, but just avoiding divorce, your best option may be to seek counseling. You can choose a counseling method that speaks to you, and if you need help finding a divorce counselor or therapist, we would be happy to provide you with a recommendation.
Schedule a Divorce Consultation at Stearns-Montgomery & Proctor
For over 28 years and 10,000 cases of local Georgia divorce experience, Stearns-Montgomery & Proctor is recognized as one of the most reputable collaborative family law practices in Atlanta. With veteran, core, services such as child custody & support, alimony & spousal support, paternity and father’s rights, adoption, domestic partnerships and grandparent’s rights, the SM&P approach has proven to be respectful, attentive and resolution-driven. To schedule a consultation with Stearns-Montgomery & Proctor click the button below, or call (678) 971-3413.