Everyone passes through challenging times in their life. Job loss, severe illness, and unplanned pregnancies are just a couple of these. A leading reason why these experiences are so stressful is because financial troubles are normally accompanied with them. In most cases, financial challenges are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we sometimes see these two incidents happen at the same time. Although both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can lead to a drawn-out and distressing process for both parties.
If you and your companion have concluded that divorce and bankruptcy are the best options in moving on with your lives, there are several options that you must consider. This article strives to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are a number of factors to consider.
To answer this question, you should discuss your specific circumstances with a qualified bankruptcy expert. You’ll need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require litigation? Regularly, divorces are a very complicated process and there will be issues that arise without your prior consideration. This merely emphasises the importance of sufficient 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 qualified divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy expert and divorce lawyers will want to communicate frequently to make sure that they have all relevant information to give you the best case possible. Although both events are separate, there are topics that will arise in both cases that can drastically affect the result of each outcome.
In some cases, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Usually, 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 division of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can usually eliminate sizable amounts of joint marital debt.
The most frequent concern here is that filing for joint bankruptcy implies that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be a possibility. In addition, once a divorce is filed, it’s very likely that both parties will not come to an understanding 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 remember 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 lengthy processes, they’re also a chance to move forward 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 critical. 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 invest the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For more information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Wyong on 1300 795 575 or visit http://www.bankruptcyexpertswyong.com.au