Best Los Angeles Bankruptcy Law Firm in Property Distribution
May 31, 2019
However, a court ruling offers a lot of benefits, especially if you and your ex-spouse have
properties. For that reason, you should still consider getting a court order. In that way, you and your ex-spouse could distribute the properties equally.
Some spouses just lost interest in the family home and gave it to the other spouse. But doing so will cause them to receive nothing.
One of their reasons is that they want their kids to continue living in the house. Or they just do it because they thought it was the right thing to do, out of guilt.
But this decision will only make the matter worse if you or your ex-spouse filed for bankruptcy. Keep in mind that creditors can recover property transfers. Uneven distribution of property is a fraudulent transfer under bankruptcy law.
It means that a trustee can file a lawsuit against a party who benefited from the transfer, two years after the transfer was made. The recovery period can be longer. In California, the statute of limitations for this kind of transfer is four years.
Get a Court Order
The best Los Angeles bankruptcy law firm advises getting a court order to avoid transfer issues later. A court judge may consider the division of property to be right making it safe from a bankruptcy trustee. A creditor cannot undo the transfer.
Sure, you are not going to file bankruptcy tomorrow or a year after the divorce. However, you will not know what the future holds. You may mismanage your money for whatever reason.
With a court order, your property is safe as the judge approves the property distribution.
Marital Equalization Payments
It is another issue when getting a divorce. Marital dissolution combine support obligations and property equalization.
But they are two different things. The property equalization may involve paying insurance or taking care of debts accumulated throughout the marriage.
If the court order does not have a clear designation, it could still interfere with the property distribution later on.
Ask a Lawyer
Hiring a top family law attorney with bankruptcy law experience is vital in this matter. Property distribution can be a complicated process when getting a divorce.
Our law firm, Gomez and Simone, will give you personal attention in filing a divorce. In that way, everything is clear, even the property distribution.
We are against those actions that can cost more to the clients than they could benefit them. If you need mediation during a divorce proceeding, we have the legal expert to help you out.
Divorce is painful and stressful. It does not only affect you, your spouse and your kids but it also affects your properties. For that reason, it is vital that you work with a lawyer with years of experience in property distribution and divorce.
Get in touch with our Los Angeles bankruptcy law firm today for a consultation. Do not take this matter on your own. Call us.