|March 24, 2017||0|
Everybody goes through difficult times in their life. Job loss, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these incidents are so stressful is because financial troubles are usually accompanied with them. In many cases, financial complications are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we often see these two situations happen in unison. Even though both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can bring about a lengthy and painful process for both parties.
If you and your companion have concluded that divorce and bankruptcy are the best options in moving on with your lives, there are a number 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 few variables to think about.
To answer this question, you should talk about your individual circumstances with a competent bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will specific issues be contested that will require lawsuits? Usually, divorces are a very complicated process and there will be issues that emerge without your prior consideration. This simply emphasises the importance of sufficient research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on ways to split your assets and debts, and litigation is more than likely, the first step you should take is to look for a competent divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy specialist and divorce lawyers will have to converse regularly to make sure that they have all relevant information to give you the best case possible. While both events are separate, there are matters 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 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 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 distribution of property when the divorce is eventually filed. While bankruptcy does not divide joint assets and debts, it can usually eliminate considerable amounts of joint marital debt.
The most prevalent problem here is that filing for joint bankruptcy denotes that you and your spouse will need to make joint decisions. If this is not achievable, 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 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 lengthy processes, they’re also a chance 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 position where you and your spouse can agree and make joint decisions, then usually both actions will be less costly and time consuming. What is clear is that you should spend the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For more information, or to talk to someone about your individual circumstances, contact Fresh Start Solutions Sydney on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-sydney