Divorce can be an overwhelmingly stressful and highly emotional time for anyone. The inclusion of bankruptcy in such a situation can make it even more daunting. If you are currently in Maine and contemplating divorce and/or bankruptcy, it is crucial to have a clear understanding of how these two processes can potentially intersect and impact each other. The purpose of this article is to provide you with guidance in navigating the complexities of Maine divorce and bankruptcy.
Understanding Maine Divorce
In Maine, the legal term for divorce is "dissolution of marriage." To initiate a divorce proceeding in the state of Maine, you must meet specific residency requirements. It is mandatory for either you or your spouse to have resided in Maine for a minimum of 6 months before filing for divorce. Generally, the divorce process in Maine takes several months or even longer.
Maine’s Property Division Laws
Maine follows the principle of "equitable distribution" when it comes to dividing marital property. This means that the court aims to divide the property in a fair manner, considering various factors, rather than requiring an absolute equal division. Marital property typically includes any assets or debts acquired by either you or your spouse during the course of the marriage.
In a Maine divorce, several factors that the court may consider when dividing property include:
- The length of the marriage, taking into account the duration of the union and the bonds formed over time.
- The age and overall health of each spouse, as this can affect their earning potential and financial stability.
- The income and earning capacity of each spouse, including their current and potential future earnings.
- The contribution of each spouse to the acquisition, preservation, or improvement of the marital property.
- Whether either spouse has wasted or dissipated marital property, potentially impacting the final distribution.
- Any other relevant factors that the court deems significant and necessary to consider in the particular case at hand.
Child Custody and Support in Maine Divorce
If you and your spouse have children, one of the critical aspects to address during the divorce process is child custody and support. Based on the circumstances of the case, the court may award either joint or sole custody. In Maine, a child support guideline formula is employed to determine the amount of support that each parent must contribute.
Understanding Maine Bankruptcy
Bankruptcy is a legally bound process that can aid individuals and businesses by restructuring or eliminating their debts. In Maine, bankruptcy cases are filed in the United States Bankruptcy Court for the District of Maine. There are primarily two types of bankruptcy that individuals can file:
Chapter 7 bankruptcy: Commonly referred to as "liquidation" bankruptcy, in which non-exempt assets are sold by the court to repay creditors. However, in Maine, specific properties can be exempt from sale, including your primary residence (up to a specific value), your vehicle (up to a certain value), and personal property (up to a specific value).
Chapter 13 bankruptcy: Often known as "reorganization" bankruptcy, this allows individuals to create a repayment plan spanning 3-5 years to settle their debts. Chapter 13 bankruptcy enables individuals to retain their assets while catching up on overdue payments.
Divorce and Bankruptcy in Maine
Individually, divorce and bankruptcy are complex legal processes to navigate. When the two intertwine, the complications can multiply exponentially. The following key points highlight how divorce and bankruptcy intersect and affect each other in the state of Maine:
Filing for Divorce During a Bankruptcy
If you are currently in a Chapter 13 bankruptcy and are intending to file for divorce, you must obtain permission from the bankruptcy court. This crucial step is necessary because the bankruptcy court maintains control over your assets, including those intended to be divided as part of your divorce settlement.
Filing for Bankruptcy During a Divorce
If either you or your spouse files for bankruptcy amidst ongoing divorce proceedings, it can significantly complicate matters. The bankruptcy court may issue an "automatic stay," effectively pausing any action or progress in your divorce case until the bankruptcy matter is resolved. Consequently, the court will be unable to distribute marital property or make determinations regarding spousal support until the automatic stay is lifted.
Discharging Divorce-Related Debts in Bankruptcy
In scenarios where you or your spouse have incurred debts associated with the divorce, such as attorney fees or property settlement costs, it may be possible to discharge them through bankruptcy. However, it is important to note that certain types of debts, including child support, alimony, and court-ordered property division, cannot be eliminated through bankruptcy proceedings.
Seeking Legal Assistance in Maine
When contemplating divorce and/or bankruptcy in the state of Maine, it is critical to consult a knowledgeable attorney. Seeking legal advice ensures an understanding of available options and provides guidance throughout the legal processes. To begin your journey, reach out to an experienced lawyer in Maine who specializes in handling divorce and bankruptcy cases. Their expertise will prove invaluable in helping you navigate these complex matters effectively.