By: Jeena Cho, San Francisco Bankruptcy Attorney 
Any family law attorney will tell you, money is one of the most common causes of divorce. Sure, love is supposed to be blind, and it’s probably not polite conversation to ask your date “what’s your FICO score” on the first date, but the truth of the matter is, it matters. I am coming across more soon-to-be divorced couples that are not arguing about distributions of assets but rather, distributions of debts. Not only can debt causes marriages to break-up but according to a recent New York Times article, it can also impact a budding relationship.
Maybe Tina Turner was onto something when she said:
What’s love but a second hand emotion
This begs the question, is it better to file for bankruptcy before or after marriage?
California is a community property state, meaning, after you get married, all of your income and debt that accrue after the marriage becomes community property or community debt. For many, this means that it may be more difficult to qualify for Chapter 7 bankruptcy after the marriage because your income would be combined with your spouse’s income when calculating the Means Test.
Suppose both you and your soon to be spouse each earn $45,000 per year. If you file for bankruptcy before marriage, you would be under the State median income of $47,969, hence presumptively qualify for Chapter 7. However, if you file for bankruptcy after marriage, your spouse’s income would be combined with yours and you would be above the State median income. (The current State mean for a household of 2 is $64,647.) This does not necessarily mean you do not qualify for Chapter 7, but it does mean that you would have to complete the Means Test and pass it.
Disclaimer: Unfortunately, it is impossible to give legal advice over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.
