Everyone experiences difficult times in their life. Loss of employment, major illness, and unplanned pregnancies are just a couple of these. A leading reason why these events are so stressful is because financial troubles are typically accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two events happen at the same time. While both actions are separate, the emotional features of such decisions 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 on with your lives, there are various options that you must consider. 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 factors to think about.
To answer this question, you should look at your individual circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require lawsuits? Usually, divorces are a very demanding process and there will be issues that develop without your prior consideration. This simply highlights the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how you can divide your assets and debts, and litigation is more than likely, the first step you should take is to seek a knowledgeable divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will have to talk frequently to ensure they have all relevant information to give you the best case possible. Though 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 favourable. 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 collectively, 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 considerably 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 remove sizable amounts of joint marital debt.
The most common concern here is that filing for joint bankruptcy signifies that you and your spouse need to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a solution. Furthermore, once a divorce is filed, it’s highly likely that both parties will not settle on matters 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 at 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 forward 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 generally both actions will be less costly and time consuming. What is clear is that you should spend the time and money on competent law firms relating to both your divorce and bankruptcy. For more information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Mackay on 1300 795 575 or visit http://www.bankruptcyexpertsmackay.com.au