- Wisconsin adheres to federal bankruptcy law and defines in-state divorce rules.Wisconsin state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
Title 11 of the United States Code defines American bankruptcy laws. Of primary consumer interest are Chapter 7 liquidations and Chapter 13 wage earner payment plans. Even as federal law governs the nuts and bolts of bankruptcy law, Wisconsin and other states amend critical aspects, such as exemptions. With respect to divorce, Wisconsin rules that only residents of the state who can prove a length of domicile meeting or exceeding six months may petition the court. Moreover, the filer must show continued residence in the county for 30 days before the local court accepts the divorce filing. - Wisconsin allows bankrupt consumers to opt for either taking federal or state-mandated exemptions when listing personal assets. Chapter 815 of Wisconsin law defines the various dollar values attached to personal property belonging to Wisconsin residents filing for bankruptcy relief. For example, a filer may apply a state-specified $40,000 homestead exemption for an owner-occupied home. This stands in contrast to the federally guaranteed homestead exemption of $17,450 for single filers (as outlined in 11 USC § 522(d)(1)). Depending on the worth of the home, this higher exemption may protect a homeowner's built-up equity during the forced sale of a primary residence. Other Wisconsin exemptions include insurance proceeds, pensions, various personal assets, public benefits and trade tools as well as wages. Unlike the federal exemption set, Wisconsin bankruptcy law does not recognize any wild-card exclusions.
- Chapters 765 to 768 of Wisconsin state law govern divorces. As a general rule of thumb, filers may opt to jointly petition the court for divorce on the grounds of an "irretrievable breakdown." Divorcing couples must live apart for 12 months prior to filing. As a community property state, the court divides all assets down the middle, except for private property such as inheritances or gifts. It generally takes about 120 days from the moment of filing an uncontested petition for dissolution of marriage to the entry of a divorce decree. It is interesting to note that Wisconsin requires a six-month waiting period before newly divorced couples may marry other partners.
- If children are involved in a Wisconsin divorce and the parties do not reach a mutually agreed upon custody arrangement, the state mandates mediation. While the children are still minors, neither parent may take them out of state for more than 90 successive days unless the other parent gives written permission or the court orders the removal. In addition, when seeking a new home, the parents must commit to moving no more than 150 miles apart within Wisconsin. The parent who has less than 25 percent of custodial time with the child generally pays 17 percent of his pre-tax income to support one child. In the case of two children, the amount goes up to 25 percent.
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