Divorce causes some major adjustments. It can also provide an opportunity to reset financial priorities and gain a fresh new start. When contemplating or pursuing divorce, it’s advantageous to be familiar with how debts, assets, liabilities, and income can be impacted. This article briefly covers Wisconsin’s “no-fault” status and some key points about bankruptcy including the best time to file.

Wisconsin Divorce Quick Facts

Arguments about money and spending can wreak havoc on any relationship. For Some, the financial situation is the last straw before filing for divorce. Furthermore, divorce can be the driving force behind filing bankruptcy. Here are some quick facts about Wisconsin divorce rates and how marital debt is divided our state:

• Wisconsin is a “no-fault” state meaning that either party can achieve a divorce
• Wisconsin is a “community property” state regarding marital property & debt
• 22% of divorces cite “money issues” as top reason for divorce
• Nearly 11% of Wisconsin is divorced; subsequent marriages have higher divorce rates
• Most uncontested divorce proceedings take 6-12 months to finalize
• Assets & debts by either spouse during marriage are ordinarily shared in a divorce
• (2020 U.S. Census Bureau, WI Dept. of Health & Services, Bankrate)

Should I File For Bankruptcy Before or After Divorce?

Which bankruptcy you qualify for, (chapter 7 or chapter 13), will ultimately have an impact on how your future plays out. The same can be said for the “timing” of bankruptcy. Here are some quick facts:
• Bankruptcy “automatic stay” protections take effect regardless of which type of bankruptcy you file, or when it is filed
• File a joint petition before divorce to eliminate or reduce debts which would otherwise be divided during divorce proceedings (may also reduce the divorce cost)
• File after divorce if both parties individually wish to qualify for Chapter 7 liquidation & cooperation to file a joint petition is impossible.

It is important to clarify that a divorce judgement is binding to your relationship, but not to your creditors. If an ex-partner fails to pay up on court-ordered debts, the creditor can still come after you for payment.

Final Thoughts On Divorce And Bankruptcy

After considering the implications of divorce and bankruptcy, it’s crucial to explore all available options and consult with a professional. By visiting My Debt Advisors, you can access a wealth of information and resources that can guide you through the process. Specifically, the Divorce and Debt page offers insights and advice tailored to those dealing with the financial complications that often arise during a divorce. Navigating these complex situations can be overwhelming, but with the right support, you can make informed decisions that will benefit you in the long run.

People often seek our advice during a separation from their spouse, or at some point in the divorce process. To ensure that you’re making the most informed choices about your financial future, request a free consultation as soon as possible. We are here to answer your questions. Rest assured, we will do our best to reduce your stress load during these most difficult life-situations. The timing of filing a bankruptcy while a divorce is contemplated or filed is a nuanced decision that requires a consultation with an experienced attorney.If you are in the Milwaukee area and facing such challenges, our local Milwaukee office can provide specialized assistance tailored to your needs.

Two Google reviews we received recently about filing bankruptcy due to divorce:

    • “I had a divorce that required me to file. My attorney was the best. Always answering all my questions and helped me with what to do next. Later on I referred my son to do to them as well. I wouldn’t recommend anyone else to help in your financial need.”

 

  • “After my divorce, I thought I was too broke to afford another attorney to help me through bankruptcy. Working with Michael George, and the Debt Advisor’s team was affordable and pain free. Debt Advisors worked with my schedule. I completed the whole process using virtual meetings and emails. Their payment terms fit my budget. Making the decision to file bankruptcy was the hardest part of the process. I saw the benefits of my bankruptcy quickly. A week after my petition was filed: I got an email saying my credit score improved by 90 points. A month after: the past due amount on my cable bill was gone.”

Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.

  • Exceptional service. The entire team was friendly and knowledgeable. The attorney took his time to walk me through step by step. I will recommend this law office to anyone!

    J Burks

  • I went through Debt Advisors as a referral by a friend. I am very happy I did so. The staff that I worked with were very helpful and showed a high level of professionalism. They were always able to answer any questions that I had. I was very happy with the attorney that I worked with, Michael Georg. Very professional.

    Terri Grote

  • Attorney Chad Schomburg and Debt Advisors helped me with my debt about three years ago. Chad explained the process to me and answered any questions I had, and the assistants compiled my documentation very efficiently while keeping my case moving forward. They were always available when I needed them, and even years later, I’m able to reach out to them, and they are willing to help. They have turned my life around 100%, and I could not have done it without them! Absolutely recommended!

    Tim Harris

  • They were there for my family from day 1 until the end, 5 years later (Ch. 13). Whenever I had questions or concerns they were always very responsive and gave me excellent advice. Michael and Jeremy are both exceptional bankruptcy attorneys. I highly recommend Debt Advisors.

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    J Hammond

  • Chad Schomburg and his Staff did a phenomenal job for me and in an expeditious manner. I’ve recommend countless clients to Chad Schomburg, Wow!!! Outstanding customer service from the Schomburg office:)

    Lisa Williamson