Debt sharing as a result of divorce
As you prepare for the divorce process, you realize it is only a matter of time before you have to discuss matters of property division. During this time, you will think long and hard about what is to be divided and how to get what is owed to you.
While the division of assets is a big deal, there is something else you need to think about: debt sharing.
Just as your assets will be divided, the same holds true for your debt. Over the course of your marriage, it is likely that you acquired some types of debt. This could include but is not limited to credit card debt and personal loans.
In some cases, you can refinance a loan to remove your name. In other situations, this is not possible.
Since sharing debt is a big part of the divorce process, you need to think about this alongside asset division. If you don’t, you could soon find yourself making decisions that don’t work in your favor over the long run.
It is likely that you will have to take on some debt as the result of divorce. At the same time, you may be able to reach an agreement with a spouse in which he or she pays a debt and release you from any obligation.
If you have questions or concerns regarding debt sharing during divorce, you can visit our website for more information. We have helped many people in this situation better understand what they are up against.