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How does a bankruptcy court decide to enforce a property settlement upon divorce?

That depends upon the finances of the bankrupt -- how much money he or she has. If a person has funds sufficient to meet basic living expenses and to pay the property settlement, then he or she must pay this obligation. The bankruptcy court reviews financial statements with a fine-toothed comb. This is in addition to the financial disclosure required by the divorce court.

In deciding whether to discharge the property settlement debt, courts determine whether the detriment to the creditor ex-spouse would be greater than the benefit to the debtor ex-spouse.

This makes for an invasive court examination, but it is the only way to ensure fairness and accuracy and full financial disclosure, to the divorce court as well as the bankruptcy court.