I am an Oakland Bankruptcy Attorney and deal with same-sex legal issues in the context of bankruptcy.
In today's post we'll continue our discussion of issues affecting same-sex couples in terms of filing for bankruptcy together.
Bankruptcy Attorneys in Oakland on DOMA
In yesterday's post we talked about how the Defense of Marriage Act prevents same-sex couples from filing jointly for bankruptcy. However, this is not necessarily a bad thing.
Filing chapter 7 or chapter 13 bankruptcy
First, having to file separately can be advantageous due to the exemption system covering property. Many states do not allow married couples to double up their exemptions. This is true regardless of whether the file jointly or separately. Unmarried couples can thus maximize the amount of property they are able to exempt (and thus keep).
Second, in states that subscribe to the community property system (such as California), all property that is acquired after marriage is considered community property and is thus part of the bankruptcy estate. This is true regardless of whether only one spouse files. This means that more property is subject to the control of the bankruptcy court.
Of course, one disadvantage to having to file separately is you'll also have to pay a separate filing fee. But the benefits to being able to file separately just may outweigh the detriments.
