Everybody passes through challenging times in their life. Losing a job, serious illness, and unplanned pregnancies are just a couple of these. A leading reason why these experiences are so stressful is because financial complications are often accompanied with them. In most cases, financial problems are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we often see these two events happen simultaneously. Even though both actions are separate, the emotional features of such decisions can create potential issues that cross paths and can create a lengthy and distressing process for both parties.
If you and your spouse have made a decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a few options that you must take into consideration. This article strives 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 few variables to consider.
To answer this question, you should discuss your particular circumstances with a qualified 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? Usually, divorces are a very intricate process and there will be matters that arise without your prior consideration. This merely emphasises 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 share your assets and debts, and litigation is more than likely, the first step you should take is to find a knowledgeable divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having competent legal support. Both your bankruptcy expert and divorce lawyers will have to communicate 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 subjects that will emerge in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, as well as 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 substantial amounts of joint marital debt.
The most frequent challenge here is that filing for joint bankruptcy denotes that you and your spouse have to make joint decisions. If this is not conceivable, then joint bankruptcy will not be an option. Along with that, once a divorce is filed, it’s highly likely that both parties will not agree on matters 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 prior to, during, or following a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also a chance to move on 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 usually both actions will be less expensive 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. For additional information, or to speak to someone about your individual circumstances, contact Bankruptcy Experts Sunshine Coast on 1300 795 575 or visit http://www.bankruptcyexpertssunshinecoast.com.au