How does bankruptcy enter into divorce?

Under certain conditions, a spouse who files for bankruptcy after a divorce may be relieved of obligations he or she incurs under the terms and conditions of a property settlement. While child support and alimony are not dischargeable in bankruptcy, property settlements may be modified and reduced, although not generally to the extent once possible.

Grim as it may be to contemplate, some couples find that financial ruin also accompanies the collapse of a marriage, either before or after the divorce. High living often contributes to the marital failure. In addition, the collapse of the housing market now increases the woes and worries associated with the sale of the marital home as part of a divorce settlement. The predicament of a divorcing couple whose marital home stands empty and unsold month after month is not an easy one.

That said, bankruptcy is a fact of modern life, and many divorcing couples find relief from bad decisions and bad luck in bankruptcy court.