Everybody passes through difficult times in their life. Losing a job, major illness, and unexpected pregnancies are just a couple of these. A leading reason why these incidents are so traumatic is because financial difficulties are typically 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 often see these two incidents happen concurrently. Although both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can trigger a lengthy and painful 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 number of options that you must consider. 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 number of factors to consider.
To answer this question, you should review your particular circumstances with an experienced bankruptcy expert. You’ll need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will certain issues be contested that will require lawsuits? Usually, divorces are a very intricate process and there will be matters that develop without your prior consideration. This merely accentuates the value of proper research and planning.
If you’re confident that your soon to be ex-spouse will not see eye to eye on the best ways to split your assets and debts, and litigation is more than likely, the first step you should take is to search for a knowledgeable divorce lawyer. The key to a successful outcome for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy specialist and divorce lawyers will have to correspond regularly to make sure they have all relevant information to give you the best case possible. Even though both events are separate, there are issues that will arise in both cases that can considerably affect the result of each outcome.
In some cases, filing for bankruptcy prior to filing for divorce is favourable. 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 attractive option. If you have not filed for divorce at this point, then bankruptcy can substantially 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 often remove considerable amounts of joint marital debt.
The most common dilemma here is that filing for joint bankruptcy implies that you and your spouse need to make joint decisions. If this is not possible, then joint bankruptcy will not be a possibility. In addition, once a divorce is filed, it’s very likely that both parties will not agree on 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 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 before, during, or following a divorce.
While both bankruptcy and divorce are stressful and lengthy processes, they’re also an opportunity to move on with your life and start afresh. 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 costly and time consuming. What is clear is that you should spend the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to speak with someone about your individual circumstances, contact Bankruptcy Experts Darwin on 1300 795 575 or visit https://www.bankruptcyexpertsdarwin.com.au