Everybody passes through difficult times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a couple of these. A leading reason why these experiences are so traumatic is because financial problems are generally accompanied with them. In most cases, financial problems 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 situations happen concurrently. Although both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can trigger a drawn-out and painful process for both parties.
If you and your companion have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a couple 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 few factors to think about.
To answer this question, you should talk about your specific circumstances with an experienced bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require a lawsuit? Normally, divorces are a very intricate process and there will be issues that appear without your prior consideration. This simply emphasises the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how you can split 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 successful result for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will want to correspond frequently to ensure they have all relevant information to give you the best case possible. Although both events are separate, there are subjects that will develop in both cases that can substantially affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is advantageous. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Commonly, both you and your spouse will owe creditors jointly, 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 substantially assist to eliminate joint debt, and aids in the division of property when the divorce is ultimately filed. While bankruptcy does not split joint assets and debts, it can usually eliminate considerable amounts of joint marital debt.
The most common dilemma here is that filing for joint bankruptcy signifies that you and your spouse need to make joint decisions. If this is not achievable, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s highly likely that both parties will not settle on issues 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 stressful and lengthy processes, they’re also a chance to move on with your life and start afresh. 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 generally both actions will be less expensive and time consuming. What is clear is that you should invest the time and money on competent law firms relating to both your divorce and bankruptcy. For more information, or to talk with someone about your personal circumstances, contact Bankruptcy Experts Shepparton on 1300 795 575 or visit http://www.bankruptcyexpertsshepparton.com.au