People can experience several emotions throughout the divorce process – from elation about starting a new chapter in their lives to stress about dividing one household into two to worry about building two strong independent financial futures. This roller coaster of emotions can continue while dividing assets and debts.
Dividing assets in a divorce is something that is universally understood. Dividing a book collection, movie collection, the matrimonial home or a family business can be exciting. Dividing credit card debt, personal loans or medical debt, however, can be a frightening look at the reality of debt you are now facing on your own.
A divorcing couple will have to thoroughly examine their finances to ensure no debt is being ignored. Debt division can include items such as:
- Credit card debt
- Student loans
- Auto loans
- Medical debt
- Tax liabilities
The separation of both assets and debts into marital and non-marital might, on the surface, seem a clear activity. Unfortunately, various complexities can arise when investigating debt. Questions about contributions and future responsibility might cloud an otherwise straightforward negotiation. What if one spouse amassed an enormous credit card bill on an account that was technically “joint,” but the other spouse never had access to it?
Since there is no set debt-division template, you will likely rely on the guidance of a skilled family law attorney. From start to finish, it will be their goal to ensure your rights and the stability of your financial future are protected. Make sure you consider the debt problems you might face in the future and work with an experienced lawyer.