|March 23, 2017||Comments Closed|
Everyone experiences difficult times in their life. Job loss, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these experiences are so traumatic is because financial challenges are commonly accompanied with them. In many cases, financial problems are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two incidents happen concurrently. 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 companion have made a decision that divorce and bankruptcy are the best options in moving on with your lives, there are a variety of 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 discuss 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 certain issues be contested that will require lawsuits? Normally, divorces are a very complex process and there will be complications that emerge without your prior consideration. This simply accentuates the importance of effective research and planning.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways to split 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 prosperous result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy expert and divorce lawyers will need to communicate regularly to make sure they have all relevant information to give you the best case possible. While both events are separate, there are topics that will develop in both cases that can drastically 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. Generally, 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 greatly help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can usually eliminate substantial amounts of joint marital debt.
The most common challenge here is that filing for joint bankruptcy suggests that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be a solution. Also, 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 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 difficult and time-consuming processes, they’re also a chance to move on 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 expensive and time consuming. What is clear is that you should invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your individual circumstances, contact Bankruptcy Bendigo on 1300 818 575 or visit http://www.bankruptcy-bendigo.com.au/