Everybody goes through challenging times in their life. Losing a job, serious illness, and unplanned pregnancies are just a few of these. A leading reason why these events are so traumatic is because financial troubles are often accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two incidents happen in unison. Though both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can result in a drawn-out and distressing process for both parties.
If you and your spouse have made a decision that divorce and bankruptcy are the best options in moving on with your lives, there are various options that you must consider. 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 a number of issues 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 intend on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require a lawsuit? Usually, divorces are a very intricate process and there will be matters that arise without your prior consideration. This simply highlights the value of proper 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 split your assets and debts, and litigation is more than likely, the first step you should take is to find a competent divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy specialist and divorce lawyers will want to converse regularly to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are subjects that will emerge in both cases that can considerably affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, along with individual bankruptcies. Usually, both you and your spouse will owe creditors collectively, 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 considerably help 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 remove considerable amounts of joint marital debt.
The most prevalent concern here is that filing for joint bankruptcy signifies that you and your spouse need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. Additionally, 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 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 at any time prior to, during, or following a divorce.
While both bankruptcy and divorce are stressful and time-consuming processes, they’re also an opportunity to move on with your life and start over again. Understanding the complexities 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 usually both actions will be less costly and time consuming. What is clear is that you should devote the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For additional information, or to talk to someone about your personal circumstances, contact Bankruptcy Experts Alice Springs on 1300 795 575 or visit https://www.bankruptcyexpertsalicesprings.com.au