|March 24, 2017||0|
Everyone experiences difficult times in their life. Losing a job, severe illness, and unplanned pregnancies are just a few of these. A leading reason why these experiences are so traumatic is because financial challenges are often accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and on the other hand, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two incidents happen concurrently. Though both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can trigger a time-consuming and distressing process for both parties.
If you and your companion have decided that divorce and bankruptcy are the best options in moving on with your lives, there are a couple of 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 number of variables to consider.
To answer this question, you should discuss your particular circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you plan on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require a lawsuit? Commonly, divorces are a very demanding process and there will be complications that arise without your prior consideration. This simply accentuates the value of proper research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how you can distribute your assets and debts, and litigation is more than likely, the first step you should take is to search for a knowledgeable divorce lawyer. The key to a prosperous conclusion for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy expert and divorce lawyers will have to communicate 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 substantially 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, as well as individual bankruptcies. Generally, both you and your spouse will owe creditors collectively, in which case filing for joint bankruptcy may be an appealing option. If you have not filed for divorce at this point, then bankruptcy can substantially help to eliminate joint debt, and aids in the division of property when the divorce is ultimately filed. While bankruptcy does not separate joint assets and debts, it can often eliminate sizable amounts of joint marital debt.
The most common concern here is that filing for joint bankruptcy suggests that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. In addition, once a divorce is filed, it’s highly likely that both parties will not settle on issues 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 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 following a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also an opportunity 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 commonly 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. For more information, or to speak with someone about your individual circumstances, contact Fresh Start Solutions Gold Coast on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-goldcoast