Foreclosure & Bankruptcy in Divorce
Michigan Divorce Attorney for Complex Financial Situations
Traditionally, who gets the house and how the equity will be handled in the settlement have been significant issues in many Wayne County and Oakland County divorces. This is still very important, but extremely tough economic times have made it much more common for people to be even more concerned with emerging from the divorce without crippling debt.
Divorce almost always means major financial adjustments are necessary for both parties. I am very familiar with options and key considerations if you have been hit hard by the decline in real estate values or believe bankruptcy is a possibility for you, your divorcing spouse or both. Please contact me today for a free consultation focused on your specific situation. If necessary, I have real estate specialists whom I can call to assist.
Savvy Evaluation of Your Debts and Obligations, Including Threat of Foreclosure
Together, we can take a hard look at your overall financial situation, including:
- Sorting out whether you want to stay in your home, and whether either you or your divorcing spouse may be willing and able to buy out the other party
- Evaluating whether government programs may be available to help you (or the other party) refinance a disadvantageous mortgage
- Considering the relative benefits or necessity of a short sale — or other strategies — if your home is already in foreclosure or at serious risk
- Determine the full amount of credit card debt and other marital debt that must be divided, in order to best how to proceed in settlement negotiations
Proactive Steps to Protect You from Your Ex-Spouse's Future Financial Decisions
Bankruptcy after divorce is not uncommon, and I am extremely conscientious in negotiating settlement agreements that protect my clients to the greatest possible extent.
Although spousal support and child support obligations are never dischargeable in a bankruptcy, for example, it may be necessary to stipulate specifically that payment of certain other obligations will be changed into alimony in the event of a failure to pay, so as to make them non-dischargeable in bankruptcy. Changes in the bankruptcy code have made this less of an issue than it used to be; but I still try to address it.
Also, we have to be mindful that, even though the divorce Judgment may order your spouse to pay have of a joint credit card balance (for example). The bank that issued the card does not have to pay any attention to that Judgment. The bank was not a party to the divorce; and the bank will come after you if your ex-spouse fails to pay his/her half of a joint debt. There are some techniques to work around this; and I have the experience to know what they are.