How to Keep a House in a Divorce & Bankruptcy

Divorce is complicated enough, particularly if you purchased a home with your soon-to-be ex-spouse. Going through a divorce and a bankruptcy at the same time, however, compounds the stress. If it has already been decided that you will be keeping the marital home, but you can't afford the mortgage payments, you can still file bankruptcy and keep your home.

Instructions

1. Discuss your desire to keep the marital home with your divorce attorney. If you haven't received the marital home via a divorce settlement, or if your soon-to-be ex-spouse doesn't agree to give up the home, a settlement agreement will have to be reached. Whether you receive the marital home typically depends on if you had children with your spouse and if you were the primary caretaker of the children.

2. Explore your bankruptcy options with a bankruptcy attorney. Filing Chapter 13 allows you as a bankruptcy filer to keep your home. If you decide to file Chapter 13, you will be required to make payments to creditors through a bankruptcy trustee.

3. Consult with an attorney who specializes in bankruptcy. Make sure your bankruptcy attorney knows all the details of your divorce. Often, bankruptcy takes priority over divorce. As such, you might be required to file for Chapter 13 before finalizing your divorce.

4. Know the details of your divorce settlement, if you've already reached a settlement allowing you to keep the marital home. Often, these settlements require the spouse who was awarded the home to make "best efforts" to get the other spouse's name taken off the mortgage. Additionally, if you receive the marital home, you might be required to refinance by a certain date.

Tips & Warnings

• Going through divorce and bankruptcy at the same time is too complicated to handle on your own. Because filing for bankruptcy can also affect your ex-spouse's credit score, it's important to obtain advice from an experienced bankruptcy attorney.

References

• FreeAdvice: Can I Keep My House if I File Bankruptcy?
• Divorceonline.com; What Should I do With My Home if I File for Divorce in 2010?; Henry Gornbein
• Orlando Bankruptcy Law Talk; Your Former Marital Home, Divorce and Bankruptcy; K. Hunter Goff
• Southern Maryland Law: How To Save Your Home In Bankruptcy, Divorce, or Other Financial Crisis