|March 24, 2017||0|
Everybody goes through difficult 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 troubles are often accompanied with them. In most cases, financial problems are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two events happen simultaneously. Though both actions are separate, the emotional nature of such arrangements can create potential issues that cross paths and can lead to a time-consuming and distressing process for both parties.
If you and your spouse have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety 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? Unfortunately, there is no ‘one-size-fits-all’ approach to answer this question, as there are various factors to think about.
To answer this question, you should take a look at your specific circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require lawsuits? Generally, divorces are a very complex process and there will be matters that arise without your prior consideration. This merely accentuates the importance of adequate research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on how to distribute your assets and debts, and litigation is more than likely, the first step you should take is to look for a skilled divorce lawyer. The key to a successful result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy expert and divorce lawyers will want to converse regularly to make sure they have all relevant information to give you the best case possible. Though both events are separate, there are matters that will develop in both cases that can considerably affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, along with individual bankruptcies. Usually, both you and your spouse will owe creditors together, 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 considerably assist 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 substantial amounts of joint marital debt.
The most frequent issue here is that filing for joint bankruptcy signifies that you and your spouse have to make joint decisions. If this is not conceivable, 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 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 prior to, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity 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 very important. If you’re in a situation where you and your spouse can agree and make joint decisions, then generally both actions will be less costly and time consuming. What is clear is that you should invest the time and money on proficient law firms relating to both your divorce and bankruptcy. To find out more, or to speak with someone about your individual circumstances, contact Fresh Start Solutions Adelaide on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-adelaide