Navigate:

How can a divorced spouse discharge a property settlement through bankruptcy?

A spouse can sometimes discharge the property settlement through bankruptcy, but it depends upon the facts of the particular case.

What is called "characterizing" of payments from one spouse to another is important if one spouse considers bankruptcy. Alimony and child support are not dischargeable, but property settlements are. It may be advantageous for a paying spouse to claim tax deductions for alimony, "a more important concern may govern the characterization of payments if the payer may some day seek bankruptcy protection."