Everyone experiences challenging times in their life. Losing a job, serious illness, and unexpected pregnancies are just a few of these. A leading reason why these situations are so stressful is because financial troubles are often accompanied with them. In most cases, financial complications are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we occasionally see these two incidents happen simultaneously. Whilst both actions are separate, the emotional features of such decisions can create potential issues that cross paths and can result in a time-consuming and distressing process for both parties.
If you and your companion have made a decision that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of 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 talk about your individual 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 particular issues be contested that will require a lawsuit? Usually, divorces are a very complex process and there will be issues that arise without your prior consideration. This simply emphasises the importance of sufficient research and planning.
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 seek a qualified divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will have 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 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 beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Generally, 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 substantially help to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can usually remove sizable amounts of joint marital debt.
The most frequent concern here is that filing for joint bankruptcy means that you and your spouse need 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 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 after a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity to move forward with your life and start anew. Understanding the intricacies 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 commonly both actions will be less costly and time consuming. What is clear is that you should devote the time and money on experienced law firms relating to both your divorce and bankruptcy. To find out more, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Hobart on 1300 795 575 or visit http://www.bankruptcyexpertshobart.com.au