Separation or Divorce while filing Bankruptcy

[Mirori1]

What is the name of your state (only U.S. law)? Nebraska
Currently jointly filing bankruptcy. We do not have any separation/divorce proceedings started.

Question: does the bankruptcy have to be finalized for a final hearing to legally separate?
Concern: we have not been living together since Feb of this year. He is having medical procedures (MRI, etc) done and I am concerned of this being joint/marital debt if we are still legally married. How can I protect myself from any current/future debt if no final hearing can be completed during a bankruptcy and bankruptcy can take 4 months average?

Also, if we legally separate - will it cost a lot to get divorced later if we decide to completely divorce? Or will the things settled in the separation (custody, etc) stand and divorce just be a matter of filing a request?

Thank you!

 

[single317dad]

What is the name of your state (only U.S. law)? Nebraska
Currently jointly filing bankruptcy. We do not have any separation/divorce proceedings started.

Question: does the bankruptcy have to be finalized for a final hearing to legally separate?

While it's possible to complete your bankruptcy during the divorce/separation process, I would recommend against it. Some considerations include a possible conflict of interest for your BK attorney representing both parties, possibility of additional fees for separate filings, complication of the division of assets and liabilities, and having two different courts allocating assets that may also be owed to creditors.

There are also possible advantages to divorcing first, such as doubling exemptions on personal property if that's an issue for you. Your BK attorney can best advise you on those matters.

Concern: we have not been living together since Feb of this year. He is having medical procedures (MRI, etc) done and I am concerned of this being joint/marital debt if we are still legally married. How can I protect myself from any current/future debt if no final hearing can be completed during a bankruptcy and bankruptcy can take 4 months average?

Nebraska recognizes legal separation and treats it equally to dissolution for most purposes; the intent of separation is the same as divorce, but intended for people who do not meet the state's residency requirement of one year, or the "home state" requirement of 6 months for children for custody determination. See http://nebraskalegislature.gov/laws/browse-chapters.php?chapter=42 especially 42-350 and 42-368, but much of the 42-300's will apply to you during the overall process.

If you decide to go the route of legal separation, then once that is ordered all debts accrued by the other party in their name are theirs to keep. Divorce will accomplish the same thing, so consider skipping the separation entirely if you meet the residency requirements.

Also, if we legally separate - will it cost a lot to get divorced later if we decide to completely divorce? Or will the things settled in the separation (custody, etc) stand and divorce just be a matter of filing a request?

A final decree of dissolution can be entirely different from any previous order; what was agreed on previously, while given some weight later, is not binding. You may agree right now on things, and either or both of you may change your minds completely later. What will make the final divorce less costly and quicker is the parties' continued agreement on matters, rather than any prior agreement.

 

[Mirori1]

Thank you for your time and response - that is very helpful in deciding a time line and course of action!

 

[single317dad]

Thank you for your time and response - that is very helpful in deciding a time line and course of action!

You're quite welcome.