Everyone passes through difficult times in their life. Loss of employment, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these incidents are so stressful is because financial difficulties are generally accompanied with them. In many cases, financial problems are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not a surprise that we sometimes see these two events happen in unison. Although both actions are separate, the emotional features of such arrangements can create potential issues that cross paths and can create a time-consuming and distressing process for both parties.
If you and your companion have made up your mind that divorce and bankruptcy are the best options in moving forward with your lives, there are a couple of options that you must take into consideration. 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 a few factors to think about.
To answer this question, you should go over your specific circumstances with a qualified bankruptcy expert. You will need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require lawsuits? Typically, divorces are a very complicated process and there will be complications that emerge without your prior consideration. This merely highlights the value of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on how to split your assets and debts, and litigation is more than likely, the first step you should take is to find a capable divorce lawyer. The key to a prosperous outcome for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy professional and divorce lawyers will have to communicate frequently to ensure they have all relevant information to give you the best case possible. Although both events are separate, there are issues that will develop in both cases that can drastically affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is advantageous. Both you and your spouse have the choice of filing a joint bankruptcy, as well as individual bankruptcies. Ordinarily, both you and your spouse will owe creditors collectively, 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 considerably assist to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can often remove sizable amounts of joint marital debt.
The most common 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. Also, once a divorce is filed, it’s very likely that both parties will not settle on 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 at any time before, during, or following 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 intricacies of both actions is the key to successful outcomes, so an experienced legal support team is extremely important. If you’re in a position where you and your spouse can agree and make joint decisions, then generally both actions will be less expensive and time consuming. What is clear is that you should devote the time and money on experienced law firms relating to both your divorce and bankruptcy. To find out more, or to speak with someone about your individual circumstances, contact Bankruptcy Experts Kalgoorlie on 1300 795 575 or visit https://www.bankruptcyexpertskalgoorlie.com.au