Money problems in a marriage can lead to divorce.

Because many people going through a divorce are also under a lot of financial stress, they often think about the possibility of bankruptcy as a way to keep everything under control. Stress arises from having to pay lawyer and court costs and most importantly, having to cover the expenses of two households rather than just one.

Unfortunately, divorce and bankruptcy

seem to go hand-in-hand for some people.

However, bankruptcy isn’t always the best idea, but if you decide to take that road, you won’t be alone. Bankruptcy filings have increased considerably over the last several years.

If you’re considering filing for bankruptcy along with your divorce, the way you word your divorce settlement can have a lot to do with how the bankruptcy affects your divorce – and vice versa.

How does bankruptcy and divorce fit together? Are you aware that there are different kinds of bankruptcy? The following are the way the issues settle out:

• The Automatic Stay – Stops all efforts to enforce the collection of debt.
• Discharge – Is your debt dischargeable? Can you get rid of it?
• Paying support – Obligations from your divorce to pay support, including spousal and child, is not dischargeable in bankruptcy.
• Property Settlement – The obligation of a property settlement may or may not be discharged, depending on the circumstances. The debtor must prove that he or she cannot pay the debt and still take care of themselves and their dependents – or that discharging the debt would result in a benefit to the debtor that outweighs the harm that would be caused to the former spouse by non-payment.

Debts that do not get discharged include:

• Spousal and child support
• Some obligations for a property settlement
• Student loans
• Debts arising from fraud or theft
• Criminal restitution

If your spouse starts bankruptcy proceedings before your divorce is finalized, you might want to think about filing jointly, especially if most of your debt obligations are in both your names. It is important to note that a joint bankruptcy filing is typically not available to divorced couples, even if much of their debts are held jointly.

The law surrounding divorce and bankruptcy is complicated and each case is different. Whether you need assistance with a divorce or custody dispute, or have fallen on hard times financially and need to file bankruptcy, the family law offices of Holstrom, Block & Parke can help.

We will sit down and discuss your needs and goals with you and then aggressively represent you in and out of court to achieve the best possible outcome. Contact us at one of our conveniently located offices in Orange, Riverside or San Bernardino Counties.

The cost of hiring an attorney in a divorce case can be very expensive, depending on the circumstances and complexities surrounding your situation.

Sometimes, the court will order one party to pay a portion of the attorney fees incurred by the other party, especially if one party earns more than the other; however, the family court will almost never order one spouse to pay all of the other spouse’s fees.

What can you do when you need to hire a divorce attorney but cannot afford the retainer because your spouse earns all the family income and holds the purse strings?

The problem of finding the money to retain an attorney is commonly a source of great anxiety for divorcing couples. So, how do you get an attorney to help you get through this process? Questions arise, including:

• Can you use the funds from your joint bank accounts?
• Can you use your joint credit card?
• Do you need to borrow the money from a family member or friend?
• Should your soon-to-be ex-spouse pay or contribute towards your attorney fees?

Should your spouse pay for attorney fees and costs? The answer to this question is, “it depends on the facts in your case.”

According to the California Family Code Section 2030, the court is “empowered to order the payment of fees and costs as between the parties, based on their relative circumstances (i.e. respective incomes and needs and abilities to pay) in order to ensure a parity of legal representation in the action.”

In addition, Family Code Section 1100 allows you to access joint funds before family law proceedings are actually filed. It provides that,“either spouse has the right to management and control of the community personal property.”

When a joint bank account exists, you might be wise to use some of those funds to hire your attorney before your spouse empties the account. However, it is not wise for you to take all the joint funds. Don’t appear greedy in front of the family court judge.

If you have questions regarding possible attorney fee awards in your divorce case, please contact the family law offices of Holstrom, Sissung, Marks & Anderson for the help you need. We are located in Riverside, Orange, and San Bernardino Counties.