|March 24, 2017||0|
Everyone goes through strenuous times in their life. Losing a job, major illness, and unexpected pregnancies are just a few of these. A leading reason why these incidents are so stressful is because financial problems are normally accompanied with them. In many cases, financial challenges are the leading cause of divorce, and likewise, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two incidents happen at the same time. Though both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can result in a lengthy and distressing process for both parties.
If you and your partner have concluded that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety of options that you must keep in mind. This article strives 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 several variables to consider.
To answer this question, you should talk about 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? Normally, divorces are a very complex process and there will be matters that emerge without your prior consideration. This merely accentuates the value of adequate 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 search for a skilled divorce lawyer. The key to a successful result for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy professional and divorce lawyers will have to correspond frequently to make sure they have all relevant information to give you the best case possible. Whilst both events are separate, there are issues that will emerge in both cases that can drastically 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. Generally, both you and your spouse will owe creditors jointly, 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 greatly assist to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not separate joint assets and debts, it can often eliminate significant amounts of joint marital debt.
The most prevalent complication here is that filing for joint bankruptcy implies that you and your spouse need to make joint decisions. If this is not practical, then joint bankruptcy will not be an option. Additionally, 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 keep 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 an opportunity 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 normally both actions will be less costly and time consuming. What is clear is that you should invest the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For additional information, or to talk to someone about your personal circumstances, contact Fresh Start Solutions Darwin on 1300 818 575 or visit https://freshstartsolutions.com.au/bankruptcy-darwin