Everyone experiences strenuous times in their life. Loss of employment, serious illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so stressful is because financial problems are often accompanied with them. In many cases, financial troubles are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we sometimes see these two events happen at the same time. Although both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can create a lengthy and painful process for both parties.
If you and your companion have come to the decision that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of options that you must take into consideration. This article aims 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 issues to consider.
To answer this question, you should review your particular circumstances with a professional bankruptcy expert. You will 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 lawsuits? Commonly, divorces are a very complicated process and there will be issues that emerge without your prior consideration. This merely highlights the value of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how you can split your assets and debts, and litigation is more than likely, the first step you should take is to seek a knowledgeable divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will want to talk regularly to make sure that they have all relevant information to give you the best case possible. Whilst both events are separate, there are issues that will arise in both cases that can considerably affect the result of each outcome.
In some cases, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, as well as individual bankruptcies. Ordinarily, both you and your spouse will owe creditors jointly, in which case filing for joint bankruptcy may be an enticing option. If you have not filed for divorce at this point, then bankruptcy can substantially help to eliminate joint debt, and aids in the distribution 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 common challenge here is that filing for joint bankruptcy suggests that you and your spouse need to make joint decisions. If this is not practical, then joint bankruptcy will not be an option. Additionally, once a divorce is filed, it’s very 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 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 at any time prior to, during, or after a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also a chance to move forward with your life and start anew. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is vital. If you’re in a position 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 spend the time and money on experienced law firms relating to both your divorce and bankruptcy. For more information, or to talk with someone about your individual circumstances, contact Gold Coast Bankruptcy Centre on 1300 795 575 or visit http://www.goldcoastbankruptcycentre.com.au