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Protection in a Divorce and Bankruptcy
If you are to become the ex-spouse who is owed money, you should make every attempt to have the majority of funds classified as alimony or other support. Since these debts are non-dischargeable, you will be protecting your future cash payments as much as possible. The more items that carry debt that you include in your property settlement agreement, the higher the risk that your ex-spouse may convince the bankruptcy court that certain debts should become dischargeable.
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