Drafting Divorce Obligations That Survive a Later Bankruptcy

Divorce obligations do not all survive bankruptcy equally. Domestic support obligations under 11 U.S.C. § 523(a)(5) are nondischargeable in every chapter. Property division debts under § 523(a)(15) are not — the Chapter 13 superdischarge can wipe them out. That asymmetry makes classification outcome-determinative in Chapter 13 cases.

Bankruptcy courts do not defer to the decree’s labels. They apply the substance-over-form doctrine through the Gianakas, Nunnally, and Benson multi-factor tests. Structure an equalization payment carelessly, and it becomes a dischargeable unsecured claim. Draft with the right structural and factual indicators, and the obligation survives. Collateral estoppel and procedural traps await the unprepared.

Attendees leave with a practical hierarchy of protection strategies and specific decree language to implement it. That means eliminating joint-debt exposure before finalization, characterizing obligations correctly, and securing payments through liens, QDROs, and constructive trusts. The program also covers the fraudulent transfer and plan-challenge risks raised by accelerated implementation — drafting judgment no form book supplies.