|March 24, 2017||0|
Everyone experiences challenging times in their life. Job loss, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so stressful is because financial complications are usually accompanied with them. In many cases, financial troubles 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 occasionally see these two events happen in unison. Whilst both actions are separate, the emotional features of such decisions can create potential issues that cross paths and can lead to a time-consuming and painful process for both parties.
If you and your spouse 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 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 few issues to consider.
To answer this question, you should talk about your particular circumstances with a professional bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require lawsuits? Commonly, divorces are a very complicated process and there will be matters that emerge without your prior consideration. This merely emphasises the value of effective research and preparation.
If you’re confident that your soon to be ex-spouse will not see eye to eye on how you can distribute your assets and debts, and litigation is more than likely, the first step you should take is to seek a capable divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy expert and divorce lawyers will want to talk regularly to ensure they have all relevant information to give you the best case possible. Whilst both events are separate, there are issues that will develop in both cases that can considerably affect the result of each outcome.
Sometimes, filing for bankruptcy before filing for divorce is beneficial. 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 jointly, 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 ultimately filed. While bankruptcy does not split joint assets and debts, it can usually remove substantial amounts of joint marital debt.
The most prevalent issue here is that filing for joint bankruptcy implies that you and your spouse will need to make joint decisions. If this is not possible, then joint bankruptcy will not be a solution. In addition, once a divorce is filed, it’s very likely that both parties will not come to an understanding issues 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 on with your life and start over again. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is paramount. If you’re in a situation 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 invest the time and money on experienced law firms relating to both your divorce and bankruptcy. To find out more, or to talk with someone about your personal circumstances, contact Fresh Start Solutions on 1300 818 575 or visit https://freshstartsolutions.com.au