Blanton Law, P.A.
Free Initial Consultation
941-584-4263

Man discharges property settlement obligations in bankruptcy

Florida residents who are divorced might wonder what will happen to some of their obligations if they file for bankruptcy. While they will still be required to pay things such as spousal support, on June 13, a bankruptcy court found that a debtor's obligations to his ex-wife regarding a property settlement were dischargeable.

The man in the case had filed for Chapter 13 bankruptcy. He and his ex-wife had previously agreed that they would not make any support or maintenance claims. His ex-wife attempted to argue that the indemnity agreement the two had was in the nature of alimony, support and maintenance, but the court said that she failed to prove her case. In reaching its decision, the court also considered both parties' financial situations and other factors.

The crux of the dispute was over the home the two had owned together. The man had agreed to take on the mortgage and other financial obligations but had failed to remove his former wife's name from the mortgage. The man failed to make payments on time or sell the home, and she argued that this had hurt her financially.

As this case demonstrates, a divorce decree does not remove a person's obligations to pay a mortgage. A person who is divorcing and who shares a home with a spouse might want to discuss the process of being removed from the mortgage, splitting retirement accounts, dividing debts and other issues with an attorney who has experience in negotiating property division settlement agreements. The party who ends up keeping the house can transfer other assets to compensate the other party for the loss of equity.

No Comments

Leave a comment
Comment Information

Talk To An Experienced & Compassionate Lawyer Today. Call 941-584-4263.

Email Us For a Response

Get A Free Consultation

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations:

Venice Office
1100-C S. Tamiami Trail
Venice, FL 34285

Toll Free: 888-610-0968
Phone: 941-584-4263
Fax: 941-493-5377
Venice Law Office Map

Bradenton
ComCenter at Lakewood Ranch
9040 Town Center Parkway
Suite 204
Bradenton, FL 34203

Map & Directions