Posts Tagged ‘bankruptcy’

How Are Spousal Support Payments Affected By Bankruptcy?

Monday, May 15th, 2017

Obviously, it is would be difficult to make alimony payments if you are bankrupt – in fact, it makes it near impossible. As many divorcing couples know, alimony is what is known as a nondischargeable form of debt. This means that regardless of one’s financial situation, these debts are not alleviated from the debtor.

Along with alimony, child support is also a nondischargeable form of debt. So in almost all cases, spousal support payment requirements cannot and will not be negated through bankruptcy.

With that being said, there are two, and only two, situations in which alimony requirements can be eliminated. The first one is known as “Third Party Involvement”, and is very self-explanatory. Let’s say the alimony collector, through a written document, assigns their parent or close relative to be the one to initially collect it, and then subsequently has that relative pay them the alimony (ex-mother in law receives payment, then gives ex-spouse the alimony). In this case, a case can be made to eliminate the alimony payment requirements. The only other time alimony is nullified is in “Incorrect Alimony Classification”. In basic terms, if the ex-spouse that is making payments is mandated to send those payments to an affiliate of the other, a company or the like, then by definition, it is not alimony, as it is not pertaining to domestic maintenance, which is the point of alimony. Therefore, because it is not formally alimony, it can be discharged.

If you have questions regarding spousal support or alimony payments in New York, contact Paul E Rudder, Esq, an experienced and top-rated divorce attorney in New York City. Call Paul Rudder at 212-826-9900.

For divorce legal updates, please like our official Facebook page: https://www.facebook.com/PaulEricRudderESQ/