A few days ago, I touched on the question what happens to debt before marriage, and while I touched a little bit on the divorce part, I thought I would go more into details. Sadly, if you’re going into divorce, you’re probably wondering what’s going to happen and what you’re going to more than likely owe.
To set things straight, let’s take a look at what happens to debts in divorce:
Before you even get started, you’re going to want to consult with a debt / divorce attorney before you start reading things online. Trust me, there are a l0t of misleading tidbits online, and you’re going to want to ensure that you’re getting your facts straight.
Step 1 – Get your credit report
The first thing that I would recommend is that you get ahold of your credit report. You and your spouse are going to want to analyze your debts, and see what is owed. If you’re going to be civil, and you want to agree upon things, this may be the easiest way to do so. Whether you want to sell a car, or trade some debt for another, this is really up to you. You will want this credit report to see all of your debts that you owe today.
Step 2 – Watch your debt
Going through a divorce process doesn’t happen overnight. What you’re going to want to do is make sure that you “freeze” your debts. Don’t spend your credit cards, or get another loan. Since you’re still legally married, you will find that these new debts will not only put a burden on you, but tack on even more debts to your total.
Step 3 – Agree on items
Start sorting through your debts, and try to agree on things. If you can’t agree, this is where the courts are going to come in. This is where you will want to be civil, and agree to what you should pay off, as well as what you should get rid of. If you can’t get rid of some things, find out if you’re going to pay 50/50, etc.
Looking at the entire debt process
As you file for divorce, you’re going to have to work through the family court to finalize items such as who’s going to own the home, dog and more. This is really for those that that can’t agree on things. Even when you agree, they will finalize everything in terms of statements and more to make it official.
What happens if they don’t pay?
Let’s say that you agree upon 50/50 when it comes to your debt? Well, you’re finding out that they are bailing out and you’re not seeing your money for the bills. What can you do? You’re going to want to either petition the court to enforce the agreement, or pay the payment and tell the family court that you’re paying, but need reimbursement from your spouse.
The best thing to do in the end is to consult with an attorney, as well as be as civil as possible. When you can agree upon debts, it’s going to make things a lot easier for you.
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- What Happens to Debt After 7 Years?
- Common Debt Questions and Answers
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