- 0 Comments
- March 24, 2017
- by admin
- Leave a comment
Everybody experiences challenging times in their life. Loss of employment, serious illness, and unplanned pregnancies are just a few of these. A leading reason why these events are so traumatic is because financial difficulties are often accompanied with them. In most cases, financial difficulties are the leading cause of divorce, and on the contrary, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we occasionally see these two events happen concurrently. Although both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can create a time-consuming and painful process for both parties.
If you and your partner have come to the decision that divorce and bankruptcy are the best options in moving forward with your lives, there are various 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 number of issues to consider.
To answer this question, you should review your particular circumstances with a qualified bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will several issues be contested that will require a lawsuit? Commonly, divorces are a very demanding process and there will be complications that emerge without your prior consideration. This merely highlights the importance of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on the best ways to split your assets and debts, and litigation is more than likely, the first step you should take is to find a skilled divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having competent legal support. Both your bankruptcy specialist and divorce lawyers will need to correspond frequently 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 arise in both cases that can drastically affect the result of each outcome.
Sometimes, filing for bankruptcy prior to filing for divorce is beneficial. Both you and your spouse have the option of filing a joint bankruptcy, as well as 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 considerably assist to eliminate joint debt, and aids in the distribution of property when the divorce is subsequently filed. While bankruptcy does not divide joint assets and debts, it can often eliminate significant amounts of joint marital debt.
The most frequent complication here is that filing for joint bankruptcy indicates that you and your spouse need to make joint decisions. If this is not practical, then joint bankruptcy will not be a possibility. Furthermore, once a divorce is filed, it’s highly 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 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 over again. 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 situation 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 invest the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Gladstone on 1300 795 575 or visit http://www.bankruptcyexpertsgladstone.com.au