When you go through a divorce, you have to think about a lot of things. Many people focus heavily on the division of assets. But, you should remember that you also have to divide up the debts that are amassed during the marriage.
There are several ways that the property division can be handled, but there are some important considerations to make before you finish:
Creditors and your divorce agreement
One thing that you must remember is that your creditors don’t have to abide by the divorce decree. They can still hold you and your ex both accountable for all jointly held accounts — no matter who is supposed to pay according to your agreement. This means that even if one party is required to pay a specific debt, the creditor can still report non-payments on both people’s credit reports.
The use of assets to pay off marital debts
If there’s concern about debts going unpaid, marital assets might be used to pay the debts. This ensures that neither person has to worry about the actions of the other having a negative impact on their credit score. While some might push against this, it’s typically the only way that both parties can have a clean slate financially after the divorce.
Make sure that you carefully consider your options when you’re dividing the debts during divorce. Your ex’s actions can significantly impact your creditworthiness in the future if there are joint debts remaining after the divorce and they don’t pay the ones they’re assigned. Working with someone who’s familiar with this type of situation is important so you can get the settlement that’s in your best interests.
