Everyone passes through strenuous 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 troubles are normally accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we often see these two events happen at the same time. Though both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can result in a lengthy and distressing process for both parties.
If you and your companion have concluded 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 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 few factors to think about.
To answer this question, you should take a look at 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 certain issues be contested that will require a lawsuit? Typically, divorces are a very complicated process and there will be complications that arise without your prior consideration. This simply emphasises the value of proper research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on ways to distribute your assets and debts, and litigation is more than likely, the first step you should take is to find a qualified divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having competent legal support. Both your bankruptcy specialist and divorce lawyers will want to correspond regularly to ensure they have all relevant information to give you the best case possible. Whilst both events are separate, there are matters that will arise 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 choice of filing a joint bankruptcy, as well as individual bankruptcies. Usually, both you and your spouse will owe creditors together, 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 eventually filed. While bankruptcy does not split joint assets and debts, it can often remove sizable amounts of joint marital debt.
The most common problem here is that filing for joint bankruptcy implies that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s highly likely that both parties will not come to an understanding 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 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 difficult and time-consuming 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 extremely important. If you’re in a situation where you and your spouse can agree and make joint decisions, then normally both actions will be less costly 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 to someone about your individual circumstances, contact Bankruptcy Wagga Wagga on 1300 818 575 or visit http://www.bankruptcy-waggawagga.com.au/