Everyone goes through difficult times in their life. Job loss, serious illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so traumatic is because financial difficulties are usually accompanied with them. In many cases, financial challenges 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 incidents happen at the same time. While both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can trigger a lengthy and distressing process for both parties.
If you and your companion have made a decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a couple 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? Sadly, 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 go over your individual circumstances with a knowledgeable bankruptcy expert. You’ll need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require a lawsuit? Regularly, divorces are a very complex process and there will be issues that emerge without your prior consideration. This simply highlights the importance of effective research and planning.
If you’re confident that your soon to be ex-spouse will not agree 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 competent divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having knowledgeable legal support. Both your bankruptcy professional and divorce lawyers will need to communicate regularly to ensure they have all relevant information to give you the best case possible. Even though both events are separate, there are topics that will develop in both cases that can substantially affect the result of each outcome.
In some cases, filing for bankruptcy before filing for divorce is advantageous. 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 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 significantly help to eliminate joint debt, and aids in the distribution of property when the divorce is ultimately filed. While bankruptcy does not divide joint assets and debts, it can usually remove substantial amounts of joint marital debt.
The most prevalent complication here is that filing for joint bankruptcy suggests that you and your spouse have to make joint decisions. If this is not practical, then joint bankruptcy will not be an option. Furthermore, once a divorce is filed, it’s very likely that both parties will not agree on matters 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 extremely important. If you’re in a situation where you and your spouse can agree and make joint decisions, then commonly both actions will be less expensive and time consuming. What is clear is that you should devote the time and money on competent law firms relating to both your divorce and bankruptcy. For additional information, or to speak to someone about your personal circumstances, contact Bankruptcy Experts Adelaide on 1300 795 575 or visit http://www.bankruptcyexpertsadelaide.com.au