|March 24, 2017||Comments Closed|
Everybody goes through challenging times in their life. Loss of employment, major illness, and unplanned pregnancies are just a couple of these. A leading reason why these incidents are so stressful is because financial difficulties are often accompanied with them. In many cases, financial challenges are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we occasionally see these two situations happen in unison. Whilst both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can create a lengthy and painful process for both parties.
If you and your partner have made up your mind that divorce and bankruptcy are the best options in moving on with your lives, there are various 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 couple of factors to consider.
To answer this question, you should discuss your individual circumstances with a competent 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 a lawsuit? Regularly, divorces are a very intricate process and there will be complications that appear without your prior consideration. This simply highlights the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how to divide your assets and debts, and litigation is more than likely, the first step you should take is to look for a competent divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy expert and divorce lawyers will have to talk regularly to make sure they have all relevant information to give you the best case possible. Though both events are separate, there are subjects that will develop in both cases that can drastically affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is advantageous. Both you and your spouse have the choice 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 attractive option. If you have not filed for divorce at this point, then bankruptcy can significantly help to eliminate joint debt, and aids in the division of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can usually remove considerable amounts of joint marital debt.
The most common concern here is that filing for joint bankruptcy denotes that you and your spouse will need to make joint decisions. If this is not achievable, then joint bankruptcy will not be an option. Also, once a divorce is filed, it’s very likely that both parties will not agree 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 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 after a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity to move on with your life and start over again. Understanding the intricacies 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 proficient law firms relating to both your divorce and bankruptcy. For more information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Mount Isa on 1300 795 575 or visit http://www.bankruptcyexpertsmountisa.com.au