Everyone goes through challenging times in their life. Losing a job, serious illness, and unexpected pregnancies are just a handful of these. A leading reason why these incidents are so stressful is because financial problems are typically accompanied with them. In many cases, financial challenges are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two events 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 trigger a time-consuming and distressing process for both parties.
If you and your partner have come to the decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a few 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? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are a number of issues to consider.
To answer this question, you should look at your specific circumstances with a competent bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require lawsuits? Usually, divorces are a very demanding process and there will be issues that appear without your prior consideration. This simply highlights the importance of adequate research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on how to share your assets and debts, and litigation is more than likely, the first step you should take is to look for a skilled 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 regularly to ensure they have all relevant information to give you the best case possible. While both events are separate, there are subjects 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 advantageous. Both you and your spouse have the choice of filing a joint bankruptcy, as well as individual bankruptcies. Commonly, both you and your spouse will owe creditors together, 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 assist to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not separate joint assets and debts, it can often remove sizable amounts of joint marital debt.
The most prevalent challenge here is that filing for joint bankruptcy signifies that you and your spouse will need to make joint decisions. If this is not practical, then joint bankruptcy will not be a solution. Furthermore, once a divorce is filed, it’s very likely that both parties will not agree 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 keep in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done at any time before, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also a chance to move forward with your life and start afresh. 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 generally both actions will be less costly and time consuming. What is clear is that you should spend the time and money on proficient law firms relating to both your divorce and bankruptcy. For more information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Frankston on 1300 795 575 or visit https://www.bankruptcyexpertsfrankston.com.au