Everybody passes through strenuous times in their life. Job loss, serious illness, and unplanned pregnancies are just a few of these. A leading reason why these incidents are so traumatic is because financial troubles are usually accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we occasionally see these two events happen concurrently. Whilst both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can result in a lengthy and painful process for both parties.
If you and your companion have made a decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety 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 a variety of factors to consider.
To answer this question, you should discuss your specific circumstances with an experienced 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? Normally, divorces are a very intricate process and there will be matters that emerge without your prior consideration. This merely accentuates the importance of effective research and preparation.
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 prosperous result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy expert and divorce lawyers will have to correspond regularly to make sure that they have all relevant information to give you the best case possible. Although both events are separate, there are topics that will arise in both cases that can substantially affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is advantageous. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Commonly, both you and your spouse will owe creditors jointly, in which case filing for joint bankruptcy may be an attractive option. If you have not filed for divorce at this point, then bankruptcy can significantly help to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can usually eliminate sizable amounts of joint marital debt.
The most common problem here is that filing for joint bankruptcy denotes that you and your spouse need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. On top of that, once a divorce is filed, it’s very likely that both parties will not settle 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 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 before, 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 anew. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is vital. If you’re in a situation where you and your spouse can agree and make joint decisions, then normally both actions will be less costly and time consuming. What is clear is that you should devote the time and money on competent law firms relating to both your divorce and bankruptcy. To find out more, or to talk to someone about your personal circumstances, contact Bankruptcy Experts Townsville on 1300 795 575 or visit http://www.bankruptcyexpertstownsville.com.au