Everyone passes through challenging times in their life. Loss of employment, major illness, and unexpected pregnancies are just a couple of these. A leading reason why these experiences are so stressful is because financial troubles are commonly accompanied with them. In many cases, financial problems 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 often see these two situations happen simultaneously. Although both actions are separate, the emotional nature of such arrangements can create possible issues that cross paths and can bring about a drawn-out and painful process for both parties.
If you and your companion have concluded 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 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 various variables to think about.
To answer this question, you should look at your specific circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will various issues be contested that will require lawsuits? Regularly, divorces are a very complicated process and there will be complications that emerge without your prior consideration. This simply highlights the value of effective research and planning.
If you’re confident that your soon to be ex-spouse will not see eye to eye on ways to distribute your assets and debts, and litigation is more than likely, the first step you should take is to look for a skilled 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 regularly to make sure they have all relevant information to give you the best case possible. Although both events are separate, there are subjects that will develop in both cases that can substantially 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. Ordinarily, both you and your spouse will owe creditors jointly, in which case filing for joint bankruptcy may be an appealing 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 ultimately filed. While bankruptcy does not separate joint assets and debts, it can usually eliminate sizable amounts of joint marital debt.
The most prevalent issue here is that filing for joint bankruptcy signifies that you and your spouse need to make joint decisions. If this is not achievable, then joint bankruptcy will not be a possibility. On top of that, once a divorce is filed, it’s highly likely that both parties will not agree 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 before, during, or following a divorce.
While both bankruptcy and divorce are difficult and time-consuming processes, they’re also an opportunity 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 very important. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less costly 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. For additional information, or to talk to someone about your individual circumstances, contact Bankruptcy Melbourne on 1300 879 867 or visit Bankruptcy Melbourne