Everybody passes through strenuous times in their life. Job loss, serious illness, and unexpected pregnancies are just a couple of these. A leading reason why these events are so stressful is because financial complications are often accompanied with them. In many cases, financial difficulties are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s no surprise that we sometimes see these two events happen concurrently. Although both actions are separate, the emotional features of such decisions can create possible issues that cross paths and can lead to a drawn-out and painful process for both parties.
If you and your companion have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are various 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? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are a few issues to think about.
To answer this question, you should take a look at your specific circumstances with a professional 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? Generally, divorces are a very challenging process and there will be complications that emerge without your prior consideration. This simply emphasises the importance of effective research and preparation.
If you’re confident that your soon to be ex-spouse will not agree on ways to 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 outcome for both bankruptcy and divorce is having skillful legal support. Both your bankruptcy expert and divorce lawyers will want to converse frequently to ensure they have all relevant information to give you the best case possible. Although both events are separate, there are matters that will emerge 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 option of filing a joint bankruptcy, in addition to individual bankruptcies. Normally, 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 substantially help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not divide joint assets and debts, it can often remove considerable amounts of joint marital debt.
The most frequent concern here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not conceivable, then joint bankruptcy will not be a solution. Furthermore, once a divorce is filed, it’s highly 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 keep 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 prior to, during, or after a divorce.
While both bankruptcy and divorce are difficult and lengthy processes, they’re also an opportunity to move on 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 commonly both actions will be less expensive and time consuming. What is clear is that you should devote the time and money on knowledgeable law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your individual circumstances, contact Bankruptcy Experts Toowoomba on 1300 795 575 or visit Bankrupt Toowoomba