Chapter 7 - separate property and income - means test/exemptions
Posted: Mon Apr 25, 2011 12:03 pm
Dear List mates:
I have a client who is married only on paper. They live hours apart and have all accounts and taxes separate. The nonfiling spouse's assets are separate property prior to their marriage, never commingled, and her income derives from divorce settlement proceeds from her first marriage (husbands retirement account) and from investments pre-marriage. If all was included in bankruptcy, filing spouse would not meet means test nor be able to protect her assets with exemptions.
Is there a separate property argument for income and assets - pre-marriage in a chapter 7 bankruptcy where other spouse is only on to file? If not, is legal separation enough or divorce required?
Thanks,
Stephen
Law Office of Stephen M. Stern, PLC
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