When people find themselves in divorce here in Denver or elsewhere in Colorado, oftentimes the amount of income coming into the household is greatly reduced. This coupled with family law related legal bills, loss of work, and increased expenses lead to more reliance on credit cards and cash advances. This can quickly spiral out of control and lead to a crushing debt level. As the average divorce costs $10,000.00 in legal expenses, this can often consume not only any spare income, but also can quickly bleed dry any money that has been saved up for a rainy day.

If you think you’re headed for divorce and have a lot of co-mingled debt, it may make sense to file for bankruptcy before you start your divorce proceeding. By filing bankruptcy first, you can simplify the divorce proceeding by clearing out some of your debt, making it easier to negotiate how the remaining debts should be divided, and protect you from an unexpected divorce from an ex years later that affect your personally.

It is possible that you and your spouse might want to consider filing a joint bankruptcy before the divorce. This may make the final division of any remaining debts even easier, and filing a joint bankruptcy is cheaper than filing two separate ones. However, it cannot be over emphasized that this may cause a conflict of interest that would necessitate separate representation. It depends on the relationship between you at the time, and whether it can be done without one side trying to take advantage of the other.