|March 24, 2017||0|
Everybody goes through strenuous times in their life. Losing a job, major illness, and unplanned pregnancies are just a handful of these. A leading reason why these situations are so stressful is because financial problems are often accompanied with them. In most 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 often see these two situations happen at the same time. Though both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can trigger 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 consider. 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 number of issues to consider.
To answer this question, you should go over your individual 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 some issues be contested that will require a lawsuit? Regularly, divorces are a very complicated process and there will be issues that arise without your prior consideration. This simply accentuates 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 how to divide 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 skillful legal support. Both your bankruptcy specialist and divorce lawyers will need to communicate regularly to make sure they have all relevant information to give you the best case possible. While both events are separate, there are subjects that will emerge 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 choice of filing a joint bankruptcy, along with individual bankruptcies. Commonly, 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 assist to eliminate joint debt, and aids in the division of property when the divorce is ultimately filed. While bankruptcy does not divide joint assets and debts, it can usually remove considerable amounts of joint marital debt.
The most common problem here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not achievable, then joint bankruptcy will not be an option. Along with that, once a divorce is filed, it’s very likely that both parties will not agree 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 remember 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 time-consuming 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 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 costly and time consuming. What is clear is that you should invest the time and money on experienced law firms relating to both your divorce and bankruptcy. For more information, or to talk to someone about your personal circumstances, contact Fresh Start Solutions Hobart on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-hobart