It is unfortunate and difficult to deal with divorce and bankruptcy at the same time. One thing to consider is whether you both have a lot of debt between you. If so, it might make sense to file for joint bankruptcy before starting a legal divorce proceeding. This can simplify the divorce process by clearing out some of your debt. This can also make it easier to negotiate how the remaining debts should be divided, and offer you financial protection down the road. Not only will this make the final division of any remaining debts easier, but it will also make the entire process cheaper.

What to expect when filing for bankruptcy during a divorce:

When one or both spouses file bankruptcy, all the community property – that is, property that was bought or acquired during the course of the marriage – becomes a part of the bankruptcy estate and is available to pay debts. The bankruptcy estate is simply all of the property that you own at the time the bankruptcy is filed.

When you or your spouse files a bankruptcy, an automatic stay immediately prevents creditors from collecting on most debts. But the automatic stay doesn't prevent you from asking a divorce court to order your spouse to pay child support or alimony.

Once a bankruptcy court decides that property is "exempt," meaning that it's not part of the bankruptcy estate and is therefore ineligible to be sold to pay debts, a divorce court can then divide that property between the divorcing spouses. Property exemptions are defined not only by federal law (the "Bankruptcy Code"), but also by the laws of the state in which the bankruptcy is filed.