|March 24, 2017||Comments Closed|
Everybody passes through challenging times in their life. Job loss, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these events are so traumatic is because financial problems are generally accompanied with them. In most cases, financial complications are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two events happen concurrently. Although both actions are separate, the emotional nature of such decisions can create potential issues that cross paths and can create a time-consuming and painful process for both parties.
If you and your partner have made a decision that divorce and bankruptcy are the best options in moving on with your lives, there are several 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 variety of variables to consider.
To answer this question, you should talk about your individual circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require a lawsuit? Typically, divorces are a very challenging process and there will be matters that arise without your prior consideration. This merely emphasises the value of proper research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways to share your assets and debts, and litigation is more than likely, the first step you should take is to seek a competent divorce lawyer. The key to a successful result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy specialist and divorce lawyers will have to correspond frequently to make sure that they have all relevant information to give you the best case possible. While both events are separate, there are matters that will arise in both cases that can significantly affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is favourable. 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 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 distribution of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can usually eliminate substantial amounts of joint marital debt.
The most frequent problem here is that filing for joint bankruptcy suggests that you and your spouse have to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a solution. Also, once a divorce is filed, it’s highly likely that both parties will not settle 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 keep in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done any time before, during, or following a divorce.
While both bankruptcy and divorce are difficult and lengthy processes, they’re also a chance to move forward 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 competent law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Ipswich on 1300 795 575 or visit http://www.bankruptcyexpertsipswich.com.au