Bankruptcy and divorce


#1

I am not certain what difference bankruptcy has on Equitable distribution but I would assume that you are still entitled to 1/2 the 401K, land, and car.

The marital assets on the date of separation is the amount that will have to be divided. If your spouse had money removed from the bank then you will need to get the bank to get you a copy of that withdrawal and it will need to be divided. I do not know what can be done about the cash unless you can get her to admit to taking the cash on record and spending or hiding it. Get a recorder on your phone if you believe you could draw this out of her. Once you have that you can put the amount that was taken in the ED claim…


#2
  1. Yes, but if she filed for bankruptcy you need to notify the bankruptcy court as soon as possible that you are also a creditor who may be entitled to a portion of her assets. It is likely that you will need a bankruptcy attorney of your own to make sure your interests are adequately protected.

  2. See my answer to question 1. She must declare to the court that she has a marital interest in this property.

  3. The car may be repossessed, it may be paid for, or you may need to refinance it into your own name to keep it. The answer to this will depend on the type of bankruptcy that she files and the decision of the bankruptcy trustee.

  4. She is liable to you for half of everything that existed on the date of separation.

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#3

I have a few simple questions that I am concerned about.

1 - My wife and I are separated and headed for divorce. She has a rather extensive 401K plan that I am entitled to a portion of by means of equitable distribution. She makes 25K a year more than me and is threatening bankruptcy. If she files bankruptcy, am I still entitled to the portion of the 401K plan?

2 - My wife has a piece of land in in her name, but I am on the deed in North Carolina that was purchased during the course of the marrige and I paid most of the payments. If she files bankruptcy what happens to the equity position in that property? Am I still entitled to my portion nder equitable distribution?

3 - The car I drive is titled in my wifes name, since the date of separation I have been making the payments directly to the finance company. If she files bankruptcy, what happens to that car, and the equity in the vehicle?

4 - On the date of separation my wife had physical control of all the marital cash, since that date, she has spent it all and taken the cash out of the bank and hidden it in her parents safe. Now she wants to file bankruptcy, what is her liability for the intangible proprty as it pertains to equitable distibution?

Neil Kravis