It may seem like a debt has no bearing
on divorce. But like in marriage, it can either make or break your
chances of getting through. Debt affects what assets and liabiliti…
It may seem like a debt has no bearing
on divorce. But like in marriage, it can either make or break your
chances of getting through. Debt affects what assets and liabilities
you are able to take away from the divorce settlement. And it may
complicate the proceedings with clarifications of whether or not it
is lawful for one to take which credit and why. If you and your ex
have been quite irresponsible when it comes to managing your finances
when you were still together, you both have to be vigilant this time
around, that is if you want to simplify your separation. Divorce
lawyers will often advise you to handle debt and divorce
simultaneously with debt consolidation and then settle who pays what
due after the divorce is over.
To go about the process, here are some
worthwhile tips to consider about debt and divorce:
a. Clarify if your credit card debts
are made through joint or single accounts. And once you know, make
arrangements with the bank to cut off all cards, consolidate the debt
to one joint account and then prevent further expenses by asking them
to secure both you and your partners signatures before any
transaction is made. This should make you both still responsible for
the debt you have accumulated over the years of marriage as well as
in control of how each other spends the money made during the union
while undergoing divorce.
b. You then have to observe measures on
how you could clear up all the outstanding balances you have on joint
accounts so that you do not have those credits hanging over your head
during the court proceedings. You could probably agree to sell some
personal belongings to make the cash. Or you could bargain for debt
settlement.
c. Now, if you and your partner are not
able to meet all your dues prior to the finalization of the divorce,
you could ask the bank to equally divide the payments left onto two
individual accounts so you could both equally move on. If there are
any contentions, this should be raised during the negotiations and
justly decided by a mediator.
d. If you are financially sounder than
your spouse and are feeling a bit apprehensive, you could have the
credit card company transfer all the cards to your name only so your
spouse does not have access to them before or after the divorce is
settled and add on to the debt incurred. Yes, you will carry the
burdens of the liability. But then, at least you will be in control
of them. If the bank refuses to do so to protect their interests, you
could have all your accounts cancelled and then transferred to
another account in another institution that offers smaller interest
rates for a specific period of time.
Managing debt and divorce may seem
overwhelming at first. But with a little guidance
, you will be able
to get out of the bind youre in in one piece and start over a new
leaf.
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