Everyone experiences strenuous times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a couple of these. A leading reason why these experiences are so stressful is because financial difficulties are typically accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we occasionally see these two situations happen in unison. While both actions are separate, the emotional nature of such decisions can create potential issues that cross paths and can trigger a drawn-out and distressing process for both parties.
If you and your spouse have made up your mind that divorce and bankruptcy are the best options in moving on with your lives, there are a variety of options that you must keep in mind. This article strives to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a few factors to think about.
To answer this question, you should talk about your specific circumstances with an experienced bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require lawsuits? Typically, divorces are a very challenging process and there will be complications that emerge without your prior consideration. This simply highlights the importance of proper research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how to distribute your assets and debts, and litigation is more than likely, the first step you should take is to look for a knowledgeable divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will have to correspond regularly to make sure that they have all relevant information to give you the best case possible. Whilst both events are separate, there are topics that will arise in both cases that can significantly 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, as well as individual bankruptcies. Ordinarily, both you and your spouse will owe creditors collectively, in which case filing for joint bankruptcy may be an enticing option. If you have not filed for divorce at this point, then bankruptcy can considerably help to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not separate joint assets and debts, it can often remove substantial amounts of joint marital debt.
The most frequent complication here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not achievable, then joint bankruptcy will not be a solution. In addition, once a divorce is filed, it’s very likely that both parties will not agree on 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 any time before, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity to move on with your life and start anew. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is paramount. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. To find out more, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Hervey Bay, on 1300 795 575 or visit http://www.bankruptcyexpertsherveybay.com.au