Everyone passes through challenging times in their life. Losing a job, major illness, and unexpected pregnancies are just a handful of these. A leading reason why these situations are so stressful is because financial difficulties are typically accompanied with them. In many cases, financial problems are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we often see these two events happen concurrently. Though both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can lead to a lengthy and painful process for both parties.
If you and your spouse have made a decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a few options that you must take into consideration. This article strives 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 few variables to think about.
To answer this question, you should review your individual circumstances with a qualified bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require litigation? Commonly, divorces are a very complicated process and there will be complications that develop without your prior consideration. This simply highlights the importance 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 share your assets and debts, and litigation is more than likely, the first step you should take is to seek a skilled divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy specialist and divorce lawyers will want to converse frequently to ensure they have all relevant information to give you the best case possible. While both events are separate, there are subjects that will develop in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, along with individual bankruptcies. Normally, both you and your spouse will owe creditors collectively, in which case filing for joint bankruptcy may be an appealing option. If you have not filed for divorce at this point, then bankruptcy can considerably assist to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not split joint assets and debts, it can often remove substantial amounts of joint marital debt.
The most frequent concern here is that filing for joint bankruptcy signifies that you and your spouse have to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a possibility. On top of that, once a divorce is filed, it’s highly likely that both parties will not agree on matters 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 before, during, or after a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also an opportunity 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 paramount. If you’re in a situation where you and your spouse can agree and make joint decisions, then usually both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on competent law firms relating to both your divorce and bankruptcy. For more information, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Port Macquarie on 1300 795 575 or visit http://www.bankruptcyexpertsportmacquarie.com.au