Everyone goes through strenuous times in their life. Losing a job, major illness, and unexpected pregnancies are just a couple of these. A leading reason why these situations are so stressful is because financial challenges are normally accompanied with them. In many cases, financial complications are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two events happen concurrently. Although both actions are separate, the emotional nature of such decisions can create possible issues that cross paths and can trigger a lengthy and painful process for both parties.
If you and your spouse have decided that divorce and bankruptcy are the best options in moving on with your lives, there are several options that you must keep in mind. This article aims 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 several factors to think about.
To answer this question, you should go over your particular circumstances with an experienced bankruptcy expert. You will 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? Generally, divorces are a very intricate process and there will be complications that appear without your prior consideration. This simply highlights the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not see eye to eye on how to distribute 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 outcome for both bankruptcy and divorce is having competent legal support. Both your bankruptcy expert and divorce lawyers will need to correspond frequently to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are topics that will develop in both cases that can considerably affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, in addition to 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 distribution of property when the divorce is eventually filed. While bankruptcy does not split 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 implies that you and your spouse need to make joint decisions. If this is not achievable, then joint bankruptcy will not be an option. Also, 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 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 after a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity 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 commonly both actions will be less costly and time consuming. What is clear is that you should spend the time and money on competent law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Gold Coast on 1300 879 867 or visit http://www.bankruptcyexpertsgoldcoast.com.au