Ex-Wife’s Legal Fees Get Priority After Ex-Husband’s Bankruptcy

Attorneys’ fees awarded to a debtor’s ex-wife during divorce proceedings are a domestic support obligation entitled to priority treatment in a subsequent bankruptcy, a federal judge held Oct. 15.

The legal fees were awarded “in the nature of support” and were intended to offset the extreme hardship the fees would impose on the debtor’s ex-wife following the divorce, wrote Judge Magdeline D. Coleman of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.

John and Lisa Waldorf divorced after substantial litigation. The state court allowed Lisa Waldorf to retain custody of their son and equitably distributed their marital property. ...