Everybody goes through challenging times in their life. Losing a job, serious illness, and unexpected pregnancies are just a handful of these. A leading reason why these incidents are so stressful is because financial challenges are generally accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we occasionally see these two situations happen in unison. Although both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can create a time-consuming and distressing process for both parties.
If you and your companion have made a decision 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 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 think about.
To answer this question, you should review your particular circumstances with a professional bankruptcy expert. You’ll need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require a lawsuit? Typically, divorces are a very complex process and there will be issues that appear without your prior consideration. This simply emphasises the value of effective 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 split your assets and debts, and litigation is more than likely, the first step you should take is to look for a qualified divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy expert and divorce lawyers will have to correspond frequently to make sure that they have all relevant information to give you the best case possible. Even though both events are separate, there are topics that will develop in both cases that can considerably affect the result of each outcome.
In some cases, 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 together, 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 dramatically help to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can usually eliminate sizable amounts of joint marital debt.
The most common dilemma here is that filing for joint bankruptcy means that you and your spouse need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. 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 refuses to file for bankruptcy, then the process changes even further. Always bear 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 prior to, during, or after a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also a chance to move forward 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 very important. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on competent law firms relating to both your divorce and bankruptcy. For more information, or to speak with someone about your personal circumstances, contact Bankruptcy Experts Penrith on 1300 795 575 or visit https://www.bankruptcyexpertspenrith.com.au