Bankruptcy and Divorce in Florida: Which to File First? (2026 Guide)
Facing both bankruptcy and divorce in Florida? Learn which to file first, how bankruptcy affects property division, and whether to file jointly or separately. Complete guide to navigating both processes.
Bankruptcy and Divorce: A Common Combination
Financial stress is a leading cause of divorce, so it's no surprise that many couples face bankruptcy and divorce simultaneously. If you're in this situation, the order and timing of your filings can significantly impact both outcomes.
Key question: Should you file bankruptcy before, during, or after your divorce?
The answer depends on several factors including your debt level, property, income, and how amicable your divorce is.
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Quick Decision Guide
| Situation | Recommendation |
|---|---|
| Mostly joint debt, amicable divorce | File bankruptcy first (together) |
| High individual income, high debt | File bankruptcy first (may need individual filing) |
| Significant separate property | File divorce first |
| Can't cooperate with spouse | File divorce first |
| Urgent need to finalize divorce | File divorce first, bankruptcy later |
| Complex property division | Consult both attorneys before deciding |
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Option 1: File Bankruptcy Before Divorce
Advantages:
- Eliminate joint debt — Discharge shared debts so divorce only divides assets
- Simpler property division — Less debt to allocate between spouses
- Double exemptions — Married couples may protect more property
- One bankruptcy fee — Joint filing costs about $300-$350, same as individual
- Cooperation advantage — Working together on bankruptcy may ease divorce negotiations
Disadvantages:
- Delays divorce — Chapter 7 takes 4-6 months; Chapter 13 takes 3-5 years
- Requires cooperation — Must agree on all bankruptcy schedules and filings
- Income issues — Combined income may disqualify you from Chapter 7
- Ties you together — Legally connected throughout bankruptcy case
Best for:
- Couples with primarily joint debt
- Those who can cooperate through both processes
- Cases where debt elimination simplifies divorce
- Combined income that still qualifies for Chapter 7
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Option 2: File Bankruptcy After Divorce
Advantages:
- Faster divorce — No waiting for bankruptcy to complete
- Lower income individually — More likely to qualify for Chapter 7
- No cooperation needed — File independently without spouse's involvement
- Cleaner separation — Completely separate legal matters
Disadvantages:
- Joint debt remains — You're both liable until discharged
- Two bankruptcy filings — Each spouse may need to file separately
- Creditor issues — If ex-spouse doesn't pay "their" debt, creditors pursue you
- Higher total cost — Two individual bankruptcies vs. one joint filing
Best for:
- High-conflict divorces where cooperation is impossible
- Cases where individual income qualifies for Chapter 7 but joint doesn't
- When divorce is urgent and can't wait
- Significant separate debts (not joint)
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How Bankruptcy Affects Property Division
Marital Property and the Bankruptcy Estate
When you file bankruptcy, a "bankruptcy estate" is created that includes all property you own. If you're still married, this may include marital property that would otherwise be divided in divorce.
Chapter 7: The bankruptcy trustee can liquidate non-exempt property to pay creditors. This happens before divorce property division.
Chapter 13: You keep property but must pay creditors through a 3-5 year repayment plan. Property division can proceed, but must account for plan payments.
Exempt Property
Florida has generous exemptions that protect property from bankruptcy creditors:
- Homestead — Unlimited value for your primary residence
- Personal property — $1,000 per person (limited)
- Retirement accounts — Fully exempt
- Wages — Head of household wages fully exempt
Married couples filing jointly may claim double exemptions in some categories.
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Joint Debt After Divorce: The "Hold Harmless" Problem
A common divorce mistake: assuming that allocating debt to one spouse protects the other.
Reality: Divorce decrees do not bind creditors.
Example:
Solutions:
- Refinance joint debt into one spouse's name before divorce
- Sell assets and pay off debt before divorce
- File joint bankruptcy to discharge debt before divorce
- Include indemnification clause + require life insurance in decree
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Domestic Support Obligations Are NOT Dischargeable
Certain divorce-related debts cannot be discharged in bankruptcy:
Never dischargeable:
- Child support (past, present, and future)
- Alimony / spousal support
- Property settlement payments to the extent they're actually support
Potentially dischargeable (in Chapter 13 only, not Chapter 7):
- Property equalization payments
- Hold harmless obligations for joint debt
- Attorney fees owed to spouse's attorney
This is why receiving alimony or child support is more secure than receiving a property settlement—bankruptcy cannot eliminate support obligations.
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Summary: Key Takeaways
Both processes are complex, and the intersection adds additional complexity. Professional guidance from attorneys experienced in both areas is strongly recommended.
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About the Author
Antonio G. Jimenez, Esq.
Florida Bar #21022 · 20+ Years Experience · LL.M. Trial Advocacy
Antonio is the founder of Resolute Divorce Law and creator of Victoria AI OS. A U.S. Navy veteran and former felony prosecutor, he has handled thousands of family law cases across Florida. He built this firm to deliver efficient, transparent legal services using technology he developed himself.
Frequently Asked Questions
Should I file bankruptcy before or after divorce in Florida?
It depends on your situation. File bankruptcy first if you have significant joint debt and can cooperate with your spouse—this eliminates debt before dividing property. File divorce first if you can't cooperate, if individual income better qualifies for Chapter 7, or if you need the divorce finalized quickly.
Can bankruptcy discharge alimony or child support in Florida?
No. Child support and alimony (domestic support obligations) are never dischargeable in bankruptcy—not in Chapter 7 or Chapter 13. These obligations survive bankruptcy completely. This is federal law under 11 U.S.C. § 523(a)(5).
If my ex is supposed to pay a joint debt and files bankruptcy, am I still liable?
Yes. Your divorce decree doesn't bind the creditor. If your name is on a joint debt and your ex-spouse files bankruptcy or stops paying, the creditor can pursue you for the full amount. This is why eliminating or refinancing joint debt during divorce is important.
Can married couples file bankruptcy together in Florida?
Yes. Married couples can file a joint bankruptcy petition, which discharges both spouses' debts in one case for one filing fee. This often makes sense before divorce because it eliminates joint debt and may allow higher property exemptions.
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