Is a pre-nup enforceable if the party who has to shell out the money declares bankruptcy?
Is a pre-nup enforceable if the party who has to shell out the money declares bankruptcy? Tim Cella used to work at several law firms Short answer is yes and no. Let me explain. A prenuptial agreement is an enforceable contract between two parties entering into a marriage even if a party files for bankruptcy. Filing bankruptcy only means that a party may possibly not have to pay back a debt that is owed depending on the chapter of bankruptcy is filed and whether a discharge is entered by the court. Remember, filing for bankruptcy is not the same thing as receiving a discharge. The pre-nup typically outlines the division of assets and liabilities should the marriage end in divorce. In the event that one of the parties declares bankruptcy, the prenuptial agreement may still be enforceable, depending on the circumstances. If the party who is obligated to pay out money in the prenuptial agreement declares bankruptcy, his or her creditors may be able to take the assets specified in th...