Everyone experiences challenging times in their life. Losing a job, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these situations are so traumatic is because financial complications are normally accompanied with them. In most cases, financial complications 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 often see these two events happen at the same time. Though both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can bring about a lengthy and painful process for both parties.
If you and your companion have made up your mind that divorce and bankruptcy are the best options in moving forward with your lives, there are various options that you must keep in mind. 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 consider.
To answer this question, you should take a look at your particular circumstances with a professional 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 lawsuits? Commonly, divorces are a very complex process and there will be matters that appear without your prior consideration. This merely emphasises the importance of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to share your assets and debts, and litigation is more than likely, the first step you should take is to look for a knowledgeable divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having competent legal support. Both your bankruptcy specialist and divorce lawyers will have to talk regularly to make sure that they have all relevant information to give you the best case possible. Though both events are separate, there are issues that will emerge in both cases that can substantially 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, along with individual bankruptcies. Ordinarily, both you and your spouse will owe creditors jointly, 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 dramatically help 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 usually remove substantial amounts of joint marital debt.
The most frequent challenge here is that filing for joint bankruptcy denotes that you and your spouse need to make joint decisions. If this is not conceivable, then joint bankruptcy will not be an option. In addition, once a divorce is filed, it’s highly likely that both parties will not come to an understanding 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 before, during, or after a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also a chance to move forward with your life and start over again. 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 situation where you and your spouse can agree and make joint decisions, then normally both actions will be less costly and time consuming. What is clear is that you should devote the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Maitland on 1300 795 575 or visit http://www.bankruptcyexpertsmaitland.com.au