Case Summary:
Ex-husband brought adversary proceeding to establish nondischargeability of marital debts pursuant to section 523(a)(5). The Court, Judge Robert Martin, held that Matter of Woods, 561 F.2d 27, 29 (7th Cir. 1977) established that, while the nature of the obligation is ultimately a bankruptcy court issue, if the intentions of the parties and the divorce court are clear, there is no need to consult state law to determine whether an obligation is in the nature of maintenance, alimony, or support or part of a property settlement. Nichols v. Nichols, 469 N.W. 2d 619, 625 (Wis. 1991) provides that there is nothing to prevent divorcing parties from specifically waiving maintenance and making up disparities in financial positions by assigning and assuming responsibility for marital debts, thereby keeping as part of support what otherwise might be characterized as a property settlement.
Statute/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees
11 U.S.C. § 523(a)(15) -- Nondischargeability - Marital Obligations
Key Terms:
Divorce Decrees - Maintenance or Property Division
Non-Dischargeable Debt