Dealing with Debt in a Divorce

 Posted on August 08, 2012 in Family Law

In divorce proceedings many things are split between former spouses. Property, money, and children are things that ex-spouses have a tendency to fight about who will receive what. But whatever about things that aren’t so nice, such as debt. When you have agreed for better or for worse, you are responsible for some of the debt your spouse has acquired. To protect yourself from being responsible for an unfair amount of debt there are steps you can take.

Attaining your individual credit report is very important before you divorce your partner. All three credit bureaus will be able to tell you about you and your spouse’s credit activity. It may not be a pretty realization, but it will give you a touchstone for how much work is left to do. In the interest of re-establishing your own credit in only your name, open up an account (checking, savings, credit, or brokerage). This will be integral to the next stage in your life.

In tandem with this activity, you should close any accounts that are under both you and your spouse’s names. This will allow you to stop any more debt from pilling up that you won’t want to be responsible for. Letting your spouse know what you are doing with your credit cards will allow you to keep a friendly relationship. No one would want to have their credit cards declined in a checkout line.

The best thing that is available to your possible divorce is eliminating all debts that are held by both parties. If you aren’t able to pay off the debts now, you and your partner should talk about who will be responsible for the debts. If you are responsible for debts, you will be entitled to more property when assets are divided. The same will be true if your spouse agrees to manage your united debts.

While all of these words of advice are good generically, there is nothing that compares to personalized legal advice. When you become serious about filing for a divorce, there are many aspects to sort out such as child custody, division of property and alimony. Contact an experienced divorce attorney in Bloomingdale to assist you in making a new future for yourself.