Everybody goes through difficult times in their life. Job loss, major illness, and unplanned pregnancies are just a handful of these. A leading reason why these situations are so traumatic is because financial complications are typically accompanied with them. In many cases, financial troubles 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 occasionally see these two incidents happen simultaneously. While 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 painful process for both parties.
If you and your companion have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a few options that you must consider. 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 several variables to think about.
To answer this question, you should discuss your particular circumstances with a professional bankruptcy expert. You will need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require a lawsuit? Commonly, divorces are a very complicated process and there will be complications that arise without your prior consideration. This merely emphasises the importance of proper research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on the best ways 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 prosperous result for both bankruptcy and divorce is having competent legal support. Both your bankruptcy specialist and divorce lawyers will have to converse regularly to make sure they have all relevant information to give you the best case possible. While both events are separate, there are matters that will emerge in both cases that can drastically affect the result of each outcome.
In some cases, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Commonly, 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 distribution of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can usually eliminate considerable amounts of joint marital debt.
The most frequent dilemma here is that filing for joint bankruptcy implies that you and your spouse need to make joint decisions. If this is not achievable, then joint bankruptcy will not be a possibility. Also, once a divorce is filed, it’s very 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 refuses 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 before, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity to move forward 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 paramount. 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 additional information, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Australia on 1300 795 575 or visit http://www.bankruptcyexpertsaustralia.com.au