Everybody passes through challenging times in their life. Job loss, serious illness, and unplanned pregnancies are just a couple of these. A leading reason why these situations are so stressful is because financial complications are normally accompanied with them. In many cases, financial challenges are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two events happen at the same time. Even though both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can lead to a drawn-out and distressing process for both parties.
If you and your companion have made up your mind that divorce and bankruptcy are the best options in moving on with your lives, there are a number of 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? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a couple of issues to think about.
To answer this question, you should go over your particular circumstances with an experienced bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will certain issues be contested that will require litigation? Regularly, divorces are a very intricate process and there will be matters that arise without your prior consideration. This simply emphasises the value of adequate research and planning.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to look for a skilled divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy expert and divorce lawyers will want to talk regularly to make sure that they have all relevant information to give you the best case possible. Even though both events are separate, there are matters that will develop in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, along with individual bankruptcies. Commonly, both you and your spouse will owe creditors jointly, 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 ultimately filed. While bankruptcy does not divide joint assets and debts, it can usually remove sizable amounts of joint marital debt.
The most frequent issue here is that filing for joint bankruptcy suggests that you and your spouse have to make joint decisions. If this is not practical, then joint bankruptcy will not be an option. Additionally, 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 before, during, or after a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity to move on with your life and start over again. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is critical. 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 knowledgeable law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Parramatta on 1300 795 575 or visit http://www.bankruptcyexpertsparramatta.com.au