Everyone goes through challenging times in their life. Losing a job, severe illness, and unplanned pregnancies are just a few of these. A leading reason why these events are so traumatic is because financial troubles are usually accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we sometimes see these two events happen at the same time. Whilst both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can result in a time-consuming and distressing process for both parties.
If you and your spouse have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a number of 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 variety of factors to consider.
To answer this question, you should talk about your individual circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require a lawsuit? Typically, divorces are a very intricate process and there will be issues that develop without your prior consideration. This simply highlights the value of proper research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on the best ways to divide 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 outcome for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will want to communicate frequently to ensure they have all relevant information to give you the best case possible. Although both events are separate, there are issues 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 option of filing a joint bankruptcy, as well as individual bankruptcies. Generally, both you and your spouse will owe creditors together, in which case filing for joint bankruptcy may be an enticing option. If you have not filed for divorce at this point, then bankruptcy can greatly assist to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can usually eliminate substantial amounts of joint marital debt.
The most common challenge here is that filing for joint bankruptcy indicates that you and your spouse will need to make joint decisions. If this is not practical, 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 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 after a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also a chance to move on with your life and start afresh. 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 position where you and your spouse can agree and make joint decisions, then commonly both actions will be less expensive and time consuming. What is clear is that you should devote the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For more information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Brisbane on 1300 795 575 or visit http://www.bankruptcyexpertsbrisbane.com.au