Everyone experiences challenging times in their life. Loss of employment, serious illness, and unplanned pregnancies are just a couple of these. A leading reason why these events are so stressful is because financial troubles are typically accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two incidents happen in unison. Whilst both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can lead to a drawn-out and distressing process for both parties.
If you and your partner have concluded that divorce and bankruptcy are the best options in moving forward with your lives, there are a number of options that you must take into consideration. This article strives to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are several variables to consider.
To answer this question, you should look at your specific circumstances with an experienced bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require litigation? Commonly, divorces are a very intricate process and there will be complications that develop without your prior consideration. This simply accentuates the importance of adequate research and planning.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to share your assets and debts, and litigation is more than likely, the first step you should take is to search for a competent divorce lawyer. The key to a successful result for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy specialist and divorce lawyers will need to converse frequently to make sure they have all relevant information to give you the best case possible. Though both events are separate, there are topics that will arise in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the option of filing a joint bankruptcy, in addition to individual bankruptcies. Generally, both you and your spouse will owe creditors together, in which case filing for joint bankruptcy may be an attractive option. If you have not filed for divorce at this point, then bankruptcy can dramatically help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can often remove considerable amounts of joint marital debt.
The most prevalent complication here is that filing for joint bankruptcy signifies that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be a possibility. Additionally, once a divorce is filed, it’s highly likely that both parties will not come to an understanding issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse declines to file for bankruptcy, then the process changes even further. Always bear in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done at any time prior to, during, or after a divorce.
While both bankruptcy and divorce are difficult and lengthy processes, they’re also a chance to move on with your life and start afresh. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is vital. If you’re in a position where you and your spouse can agree and make joint decisions, then usually both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on experienced law firms relating to both your divorce and bankruptcy. For more information, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Cassowary Coast on 1300 795 575 or visit http://www.bankruptcyexpertscassowarycoast.com.au