Everybody goes through challenging times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these incidents 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 surprising that we occasionally see these two incidents happen in unison. Whilst both actions are separate, the emotional nature of such decisions can create possible issues that cross paths and can lead to a drawn-out and painful process for both parties.
If you and your spouse 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 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 number of factors to consider.
To answer this question, you should talk about your individual circumstances with an experienced 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 litigation? Usually, divorces are a very challenging process and there will be issues that develop without your prior consideration. This simply highlights the importance of proper research and planning.
If you’re confident that your soon to be ex-spouse will not see eye to eye on the best ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to find a skilled divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy specialist and divorce lawyers will have to talk regularly to make sure that 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 before filing for divorce is beneficial. Both you and your spouse have the choice of filing a joint bankruptcy, as well as individual bankruptcies. Generally, both you and your spouse will owe creditors jointly, 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 greatly help to eliminate joint debt, and aids in the division of property when the divorce is ultimately filed. While bankruptcy does not separate joint assets and debts, it can often eliminate significant amounts of joint marital debt.
The most prevalent concern here is that filing for joint bankruptcy implies that you and your spouse need to make joint decisions. If this is not possible, then joint bankruptcy will not be an option. Furthermore, once a divorce is filed, it’s very likely that both parties will not agree on matters 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 before, during, or following a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also an opportunity to move forward 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 vital. 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 devote the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For more information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Tennant Creek on 1300 795 575 or visit http://www.bankruptcyexpertstennantcreek.com.au