Everybody passes through strenuous times in their life. Job loss, severe illness, and unplanned pregnancies are just a couple of these. A leading reason why these incidents are so stressful is because financial difficulties are normally accompanied with them. In most cases, financial complications are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two events happen simultaneously. Whilst both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can create a time-consuming and distressing process for both parties.
If you and your spouse have made a decision 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? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are various variables to consider.
To answer this question, you should review your particular circumstances with a qualified bankruptcy expert. You’ll need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require lawsuits? Usually, divorces are a very intricate process and there will be matters that appear without your prior consideration. This simply accentuates the importance of sufficient research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways to distribute your assets and debts, and litigation is more than likely, the first step you should take is to find a capable 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 want to converse regularly to make sure they have all relevant information to give you the best case possible. Though both events are separate, there are subjects that will arise in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Usually, 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 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 challenge 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 an option. Also, once a divorce is filed, it’s highly likely that both parties will not settle on issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse refuses 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 any time before, during, or after a divorce.
While both bankruptcy and divorce are difficult and lengthy processes, they’re also an opportunity to move on with your life and start over again. 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 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 invest 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 personal circumstances, contact Bankruptcy Experts Rockhampton on 1300 795 575 or visit http://www.bankruptcyexpertsrockhampton.com.au