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- March 24, 2017
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Everyone goes through challenging times in their life. Losing a job, severe illness, and unplanned pregnancies are just a handful of these. A leading reason why these events are so traumatic is because financial difficulties are generally accompanied with them. In many cases, financial difficulties 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 occasionally see these two events happen simultaneously. Although both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can create a lengthy and distressing process for both parties.
If you and your partner have decided that divorce and bankruptcy are the best options in moving forward with your lives, there are a number 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 a couple of variables to think about.
To answer this question, you should look at your particular circumstances with a professional bankruptcy expert. You will need to discuss how you anticipate dissolving the marriage– will the divorce be contested or uncontested? Or will some issues be contested that will require lawsuits? Typically, divorces are a very intricate process and there will be matters that develop without your prior consideration. This merely accentuates the importance of sufficient research and planning.
If you’re confident that your soon to be ex-spouse will not agree on ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to look for a qualified divorce lawyer. The key to a prosperous result for both bankruptcy and divorce is having experienced legal support. Both your bankruptcy professional and divorce lawyers will need to correspond regularly to ensure they have all relevant information to give you the best case possible. Though both events are separate, there are topics that will emerge 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 choice of filing a joint bankruptcy, in addition to individual bankruptcies. Commonly, both you and your spouse will owe creditors collectively, 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 dramatically assist to eliminate joint debt, and aids in the division of property when the divorce is eventually filed. While bankruptcy does not separate joint assets and debts, it can usually remove substantial amounts of joint marital debt.
The most common challenge here is that filing for joint bankruptcy indicates that you and your spouse will need to make joint decisions. If this is not achievable, then joint bankruptcy will not be a solution. 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 refuses to file for bankruptcy, then the process changes even further. Always remember 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 a chance to move forward with your life and start afresh. Understanding the complexities of both actions is the key to successful outcomes, so an experienced legal support team is vital. 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 devote the time and money on competent law firms relating to both your divorce and bankruptcy. To find out more, or to talk to someone about your individual circumstances, contact Bankruptcy Experts Gosford on 1300 795 575 or visit http://www.bankruptcyexpertsgosford.com.au