Financial strife is one of the leading causes of divorce. Also, one of the most common reasons for bankruptcy is divorce. Therefore, it can be a messy situation when your finances are not in the best shape, but divorce often cannot wait. One of the factors to take into consideration is whether you should file for bankruptcy or divorce first.

Saving Money

The fees for filing a joint bankruptcy is the same as filing for a separate bankruptcy. Therefore, it can be less expensive to file with your spouse. Also, if you hire a bankruptcy lawyer, both you and your spouse can share the same lawyer. This can help reduce legal fees. When filing for bankruptcy before divorce, you can simplify the issues with regards to property division.

Going For Chapter 7 Vs. Chapter 13

One of the main factors determining whether you should file for divorce before or after bankruptcy is whether you are filing for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is over within a few months and can reasonably by filed before a divorce. However, if you are earning a high enough wage that justifies filing for Chapter 13 bankruptcy, the duration of the bankruptcy makes it impractical to file for bankruptcy before filing for divorce. Because it takes a long time to complete, it makes more sense to file individually.

Dividing Assets

If you still have debt before you file for divorce, the debt that you own jointly may be divided up between you and your spouse. However, this simply means that you and your spouse agree to make separate payments. This does not mean that you are not responsible in the event that your spouse fails to make his or her payments. So keep that in mind when you're deciding if you want to file for bankruptcy or divorce first.

During A Contested Divorce

When you are certain that some elements of your divorce will be contested, it is a good idea to meet with a divorce lawyer before filing for bankruptcy or divorce. It is also a good idea to meet with a bankruptcy lawyer. Both of these lawyers will be able to advise you on how best to proceed without causing too much damage to your credit score or your finances.

If you do file for divorce before filing for bankruptcy, it will be important to have a little cooperation in order to minimize the damage that is done to both of your credit scores. This is especially true when handling a mortgage. For more information, contact local professionals like Dunnigan & Messier P.C.