Everyone experiences challenging times in their life. Job loss, serious illness, and unexpected pregnancies are just a handful of these. A leading reason why these experiences are so stressful is because financial troubles are commonly accompanied with them. In most cases, financial troubles are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two events happen in unison. Whilst both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can trigger a lengthy and painful process for both parties.
If you and your partner have made up your mind that divorce and bankruptcy are the best options in moving on 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 number of factors to think about.
To answer this question, you should review your particular circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require litigation? Normally, divorces are a very challenging process and there will be matters that appear without your prior consideration. This merely accentuates the value of adequate 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 share your assets and debts, and litigation is more than likely, the first step you should take is to find a skilled divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy expert and divorce lawyers will want to correspond regularly to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are matters that will develop in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, along with individual bankruptcies. Normally, 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 help to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can often remove sizable amounts of joint marital debt.
The most common problem here is that filing for joint bankruptcy suggests that you and your spouse need to make joint decisions. If this is not achievable, then joint bankruptcy will not be an option. On top of that, once a divorce is filed, it’s highly 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 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 prior to, 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 anew. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is critical. If you’re in a position where you and your spouse can agree and make joint decisions, then usually 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 with someone about your personal circumstances, contact Bankruptcy Experts Whitsundays on 1300 795 575 or visit https://www.bankruptcyexpertswhitsundays.com.au