Florida residents who are divorcing should be careful with how they handle the property division portions of their divorce cases. A recent case that was decided in the U.S. Bankruptcy Court in Georgia demonstrates the limits of the reach of family court decisions in some property division matters.
In the case, a family court ordered a man to pay his ex-wife $53,000 in the couple's property division portion of the divorce case. The judge termed the money as a property division payment and ruled that the man would not be allowed to discharge it in bankruptcy. Two weeks later, the man filed for bankruptcy, and the ex-wife challenged his ability to seek a discharge of the $53,000 based on the family court's order.