While there are many reasons people get divorced, one of the most common is finances. Whether one or both spouses do not make enough money, or they are arguing over how the money is spent - money can ultimately lead to the couple separating.

While finances can be a concern for everyone, if the couple is experiencing major problems with their money, it can put much more stress on their relationship. While there are times this is not the only reason for the split, more often statistics are finding this is the main one. With the shadow of bankruptcy over you, you will need to find a lawyer who not only specializes in divorce, but bankruptcy as well.

Finding a Lawyer

First step you need to take is to find a good lawyer. Recommendations are always a good idea, as you will hear from someone you trust who has used this professional before. Some lawyers are skilled in more than one area, so even if the recommendation comes from someone who has not been divorced or bankrupt - it could still mean this lawyer is the right one for you.

Checking the yellow pages or checking online for lawyers can work as well. If you take this route, always check credentials and even look them up with the Better Business Bureau. Asking questions is a good way to feel out the lawyer if they can help you with both issues.

Filing for Bankruptcy

If you find you are deeply in debt once you have decided to divorce, you might want to file for bankruptcy first. Filing for bankruptcy before you start the divorce proceedings can simplify your divorce - by clearing away some, if not all your debt. It will protect you against your spouse's possible filing in the future and it makes it easier to divide whatever debt remains after. It might be a good idea to file a joint bankruptcy before the divorce also. It's cheaper, and makes whatever remaining debt much easier to see.

Effects of Bankruptcy on Divorce

Once you file for bankruptcy and then divorce, all your property - those that were acquired during the marriage will become what is known as 'bankruptcy estate.' That is, this property is then available to use to pay off debts.

Once you file, the court will put a stay on your creditors. Which means, they are unable to touch any of your assets right away. This does not prevent you or your spouse from asking for child support or alimony, or from this being granted. A bankruptcy court can exempt certain properties or even vehicles from being included in the estate. If this is the case, the divorce court can then divide that property between the spouses.

Property settlement during bankruptcy is difficult. If a property was not included in the bankruptcy estate, that person who filed still has to pay for that debt. Only if they are able to prove they cannot afford to pay off the debt and still take care of themselves or any dependants; or if wiping out the debt is a benefit to that person, not at the expense of any children or their former spouse, will it be allowed.

Protection

There are a couple of things you can do to protect yourself against your former spouse possibly filing for bankruptcy. You can put a lien on any property that they own and would not necessarily part with. This protects you against any non-payment of support, if the spouse files using this property. You can claim the property as a payment of support.

You can also put a 'hold harmless' or 'indemnity' clause written into the divorce. This protects you against creditors going after you to pay for your ex - spouse's debt. If your spouse files for bankruptcy during the divorce, you can take this to court and ask the judge to enforce it.

When you go to your lawyer, make sure you ask questions specific to your situation. Make sure you understand all your options and it does help to have your spouse agree with you. This doesn't mean you can't file on your own. If you prefer, find two separate lawyers - those that specialize in their areas. You can be assured you are in the right hands and the lawyer will work for you.