Everybody experiences challenging times in their life. Losing a job, serious illness, and unexpected pregnancies are just a couple of these. A leading reason why these incidents are so stressful is because financial complications are usually accompanied with them. In many cases, financial troubles are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two events happen in unison. Even though both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can bring about a time-consuming and painful 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 several 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 number of variables to consider.
To answer this question, you should look at your specific circumstances with a qualified bankruptcy expert. You’ll 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? Generally, divorces are a very complicated process and there will be matters that emerge without your prior consideration. This simply accentuates the value 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 share your assets and debts, and litigation is more than likely, the first step you should take is to look for a competent divorce lawyer. The key to a successful 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. Whilst both events are separate, there are matters that will develop in both cases that can considerably affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, as well as individual bankruptcies. Commonly, both you and your spouse will owe creditors together, 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 considerably assist 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 substantial amounts of joint marital debt.
The most common concern here is that filing for joint bankruptcy suggests that you and your spouse have to make joint decisions. If this is not attainable, then joint bankruptcy will not be a solution. Furthermore, once a divorce is filed, it’s highly likely that both parties will not come to an understanding 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 time-consuming processes, they’re also a chance to move forward 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 very important. 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 invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Rockingham on 1300 795 575 or visit http://www.bankruptcyexpertsrockingham.com.au