Bankruptcy in divorce: The litigation tactic of the angry spouse.

A matrimonial proceeding on its own is complex and can have far‐reaching implications. Add in a spouse filing for bankruptcy in the midst of the proceeding, and the process becomes even further complicated and quite possibly hostile. This Note analyzes the bad‐faith tactics of debtor spouses filing for bankruptcy in the middle of a divorce proceeding and proposes an amendment to the Bankruptcy Code that permits bankruptcy courts to dismiss bad faith petitions before they negatively impact divorce proceedings. Key points for the family court community: Spouses filing for bankruptcy can file either jointly or separately.When bankruptcy proceedings commence, an automatic stay on the distribution of assets is created.A party may file a motion to the Bankruptcy Court to terminate or modify the automatic stay if the court finds sufficient reasons.The Non‐Debtor spouse takes on the position of an unsecured credit holder.Divorce proceedings begin with a preliminary injunction that precludes spouses from selling off assets or spending marital funds. [ABSTRACT FROM AUTHOR]