If there is one thing a divorce attorney doesn’t often discuss with clients, it is the possibility of a post-divorce bankruptcy, but with high unemployment and a sluggish real estate market, it can become a reality.  Rather than focusing on the legal issues alone, the best divorce lawyers in Colorado Springs often counsel clients on how to avoid financial hardship after the divorce.

According to a recent article published by the Marrison Law Firm, “Colorado Springs Law Firm – Why Divorce and Bankruptcy Often Go Together,” money problems are not just the cause of marital distress; they often get worse after a couple separates.  As a family lawyer in the Pikes Peak region, the author speaks about how common the problem of bankruptcy has become for divorced couples.  If a settlement isn’t carefully thought out and marital debt issues are not clearly resolved, getting a divorce may exacerbate the problem and lead the parties to blame one another for their financial troubles.

Mediation may be the best tool for preventing a future of post-marital financial distress, as it allows couples to avoid unrealistic court-ordered support and helps couples communicate more freely about finances.  In many cases, the couple will invite a financial consultant into their mediation sessions to offer advice on selling real estate, dividing marital debt, and the allocation of retirement assets.  A consultant can also provide some alternatives to traditional spousal support or alimony payments by giving the lower-earning spouse a greater share of the marital assets.

However, when a couple’s financial problems are already reaching their peak before they decide to divorce, another course of action may be necessary.  Some of the best divorce lawyers in Colorado Springs recommend filing for bankruptcy before filing for divorce.  This prevents creditors from looking to the other party if one person files for bankruptcy after the marriage is dissolved.  Imagine a newly divorced person’s surprise when they learn that, thanks to their ex-spouse’s bankruptcy, they are now responsible for 100 percent of the marital debt.  Even worse, they will no longer have their spouse’s income or support to rely on.

If you are concerned about how a bankruptcy or potential bankruptcy might affect your post-divorce finances, it is always best to seek advice from one of the best divorce lawyers in Colorado Springs.  Find out more about this topic by reading “Colorado Springs Law Firm – Why Divorce and Bankruptcy Often Go Together.”