“How do we divide the property?” “Will the court grant me child custody?” These are common questions divorcing couples resolve with their lawyers. There are, however, more financial issues to consider while going through the process of separation.
One of these issues is the division of debt repayment. As a couple, you may have incurred debts during your marriage, and you may be confused about how to address the obligation now that you’re getting divorced. Tackle the issue in a systematic manner by handling it in the same way you would property distribution or child custody.
The lawyer will defend your right, and the court will decide the way to go about your joint debt. This does not mean that you should leave the entire matter to them. Review your joint credit report thoroughly so that you’re well aware of your responsibilities; identify the shared debt and set aside the ones that are only under your name.
Remember, the mere act of reviewing the report can save you years of debt repayment.
Decide Who Is Responsible for the Debt
Whether you are still in amicable terms with your spouse or would rather not see the person again, the best way to handle debt is to discuss who is responsible for it and to settle it as soon as possible.
Have an objective discussion of who should take on which portion of the joint debt and, if possible, pay off yours during the divorce process so that you can start with a clean financial slate afterward. Divide the debt equally, and you wouldn’t have to worry about whether or not you’re paying off your spouse’s portion.
Joint debts are a concern often overlooked because of property distribution and child custody. Heed these reminders and address the issue effectively.