Everyone goes through challenging times in their life. Job loss, major illness, and unplanned pregnancies are just a few of these. A leading reason why these incidents are so stressful is because financial troubles are typically accompanied with them. In most cases, financial troubles are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we occasionally see these two events happen at the same time. While both actions are separate, the emotional nature of such decisions can create potential issues that cross paths and can lead to a time-consuming and distressing process for both parties.
If you and your companion have concluded that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of options that you must keep in mind. This article aims 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 various issues to think about.
To answer this question, you should take a look at your individual circumstances with a competent 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 a lawsuit? Commonly, divorces are a very demanding process and there will be matters that appear without your prior consideration. This merely emphasises the importance of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on ways to split your assets and debts, and litigation is more than likely, the first step you should take is to search for a knowledgeable 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 communicate regularly to ensure they have all relevant information to give you the best case possible. Though both events are separate, there are topics that will emerge in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is advantageous. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Normally, both you and your spouse will owe creditors together, 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 dramatically help to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can usually remove substantial amounts of joint marital debt.
The most prevalent dilemma here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be a solution. Along with that, once a divorce is filed, it’s very likely that both parties will not come to an understanding matters 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 prior to, during, or following 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 intricacies of both actions is the key to successful outcomes, so an experienced legal support team is extremely important. If you’re in a situation 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 proficient law firms relating to both your divorce and bankruptcy. For more information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Dubbo on 1300 795 575 or visit http://www.bankruptcyexpertsdubbo.com.au