Can one ex-spouse discharge an obligation to pay the other an amount ordered as part of the property division in the divorce?
Property division obligations are more open to discharge than obligations that are for support, however, if the ex-spouse objecting to discharge files that objection in the bankruptcy court and is able to show that the obligation is in the nature of support, then the debt could not be discharged. Because of recent changes in the bankruptcy law, even if the obligation is purely property division, a bankruptcy court must first consider the debtor’s entire financial situation, to determine whether the debtor has the ability to cover the debt with income or property not necessary for his or her support and for the support of his or her dependents. If the debtor does have adequate income to pay the debt, the bankruptcy court must balance the benefit of paying the debt against the detrimental consequences to the other ex-spouse if the debt is not paid.
