Debt Will Affect Property in Divorce
Debt Will Affect Property in Divorce
Nothing in life is easy for the majority of us mere mortals and one of the hardest issues we ever face is divorce. This is doubly true when there is a great amount of debt included in the property in divorce. In most cases the debt incurred during marriage will be split because both parties are responsible for it. The courts cannot override the credit you both originally opened during the marriage.
It is even possible that your marriage partner took out credit accounts without your knowledge or alone. Because you are married to them it is most likely that the creditor took your spouses assets and income, as well as yours, into consideration to repay the credit. This is usually the acceptable practice when "couples" take out credit.
If you are allowed to by each creditor you may be able to refinance each debt in one or the other spouse's individual name. Then that debt will be the sole responsibility of that particular spouse's property in divorce. This is usually not allowed because one or the other party's credit scores may not allow them to put the credit in their name alone.
The other route you and your spouse could consider to fairly divide debt property in divorce is to pay up and close the debt account. Closing the account before the divorce is the better option. One reason that this is the better option for most couples is that having a debt split that you didn't take out allows for you to pay the debt down greatly and then the ex spouse can go and charge even more on it again. This would not be an ideal situation for you.
Property in divorce can include home loans and auto loans. If you feel you cannot pay these loans without the additional income of the other spouse you may need to willingly give one or both of these loans to the other spouse. This means you will not be entitled to these items once they are placed solely in your ex spouse's name. You won't be left out completely though, you are entitled to a portion of what your part would be worth as it is property in divorce.
As soon as the property in divorce has been established you need to get your credit score from the three big credit reporting agencies and keep an eye on your score. Dispute any discrepancies immediately. Credit agencies notoriously try to leave even paid balances on your credit report. Let them know that it has been paid or placed solely in your spouse's name. Send copies of documentation you have to substantiate these payments or loan changes. They will need to be informed if you have a name change as well.
This will help you then keep your credit on track and let you know of changes should anyone try to use your credit. Debt is a big part of many marriages; don't let all the marital debt become all yours when it comes to property in divorce.
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