Property Divisions and the Automatic Stay
Generally, any determinations that affect the division of property between spouses will be stayed by §362. At least, this is true as to property of the bankruptcy estate. As will be seen in Chapter VII’s discussion of that concept, what is property of the estate often requires reference to state law. The bankruptcy court might find it appropriate to grant relief from the stay to allow the domestic relations court to determine what is and is not the debtor’s property if such a determination is a state law issue. A decision by a bankruptcy court to abstain from deciding what property the debtor is entitled to is not based on a lack of subject-matter jurisdiction; rather, the bankruptcy court, like other federal courts, prefers to avoid unnecessary involvement in what have traditionally been state law domestic relations decisions.






