Everyone experiences difficult times in their life. Job loss, serious illness, and unplanned pregnancies are just a handful of these. A leading reason why these events are so traumatic is because financial difficulties are commonly accompanied with them. In most cases, financial problems are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two events happen concurrently. While both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can trigger a lengthy and distressing process for both parties.
If you and your partner have decided that divorce and bankruptcy are the best options in moving on with your lives, there are various options that you must take into consideration. This article aims 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 number of factors to consider.
To answer this question, you should review your specific circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require lawsuits? Generally, divorces are a very intricate process and there will be matters that arise without your prior consideration. This merely accentuates the value of sufficient research and preparation.
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 look for a qualified divorce lawyer. The key to a successful result for both bankruptcy and divorce is having competent legal support. Both your bankruptcy professional and divorce lawyers will need to communicate frequently to ensure they have all relevant information to give you the best case possible. Although both events are separate, there are matters that will emerge in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is advantageous. 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 together, in which case filing for joint bankruptcy may be an appealing option. If you have not filed for divorce at this point, then bankruptcy can greatly assist to eliminate joint debt, and aids in the distribution of property when the divorce is ultimately filed. While bankruptcy does not divide joint assets and debts, it can usually eliminate sizable amounts of joint marital debt.
The most frequent problem here is that filing for joint bankruptcy means that you and your spouse have to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. 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 keep 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 following a divorce.
While both bankruptcy and divorce are difficult and time-consuming 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 situation where you and your spouse can agree and make joint decisions, then commonly both actions will be less expensive and time consuming. What is clear is that you should invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For more information, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Emerald on 1300 795 575 or visit http://www.bankruptcyexpertsemerald.com.au