Divorce and debt: things to do, things to avoid

As you move forward with a divorce, you will soon have questions revolving around “who gets what.” While you may focus most of your time and attention on assets, such as houses and cars, don’t forget about something else — debt.

Just as you split property in a divorce, the same holds true with debt. In other words, the slate is not wiped clean just because you are splitting up with your spouse.

Here are some actions to take and things to avoid in regards to divorce and debt:

  • Do your best to leave your marriage with no joint debt.
  • Pay off joint cards together, or separate the debt and transfer it to cards in each person’s name.
  • Make sure it is clear as to whom is responsible for paying each type of debt.
  • File court documentation regarding credit card debt so there is no gray area.
  • Use joint savings to pay off shared debts.

These are just a few of the many things to keep in mind as you get closer to divorce and move through the process.

In a perfect world, you and your spouse will not have any debt. This makes it much easier to divorce, as you only have to deal with the assets that are being split. Unfortunately, most people are not in this position, as they have some level of shared debt.

When you know what to do and what to avoid, issues related to debt in divorce will not hold you back from making your way through the process in an efficient manner.

Source: CreditCards.com, “Dividing credit card debt in divorce,” Amy E. Buttell, accessed May 05, 2016

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