Everybody goes through difficult times in their life. Loss of employment, serious illness, and unexpected pregnancies are just a handful of these. A leading reason why these experiences are so stressful is because financial challenges are typically accompanied with them. In many cases, financial challenges are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two incidents happen in unison. Whilst both actions are separate, the emotional nature of such decisions can create potential issues that cross paths and can bring about a time-consuming and distressing process for both parties.
If you and your partner have made up your mind that divorce and bankruptcy are the best options in moving forward with your lives, there are several options that you must consider. 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 few issues to think about.
To answer this question, you should take a look at your specific circumstances with a professional bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require litigation? Typically, divorces are a very complicated process and there will be issues that appear without your prior consideration. This merely highlights the value of effective 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 look for a qualified divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will need to correspond regularly to make sure that they have all relevant information to give you the best case possible. Although both events are separate, there are topics that will develop in both cases that can substantially affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Generally, both you and your spouse will owe creditors collectively, 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 significantly assist to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can often remove substantial amounts of joint marital debt.
The most common complication here is that filing for joint bankruptcy indicates that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. In addition, once a divorce is filed, it’s very likely that both parties will not settle 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 after a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also a chance to move on with your life and start anew. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is very important. 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 spend the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your individual circumstances, contact Bankruptcy Experts Albury on 1300 795 575 or visit http://www.bankruptcyexpertsalbury.com.au