Why is splitting debt crucial in a divorce?

Property distribution is an essential part of the divorce process. During these discussions, you might divide debt between you and your ex. You might feel uncomfortable voicing opinions about these matters.

However, you should thoroughly review your debts because a divorce agreement does not extend to your creditors. It means the following will apply to you and your ex:

  • Creditors can ask both you and your former spouse for any missed payments.
  • Overdue payments could affect your and your ex’s credit scores.

In some instances, one party could receive notices about overdue mortgages or credit card bills owned by the other party based on the divorce agreement. Creditors can take various steps to contact you and persistently reach out about debts that are no longer yours after the divorce.

You could take your former spouse to family court and compel them to pay for the debt. Still, it will not stop creditors from pestering you. They might only stop after your ex settles their overdue payments.

How can I avoid debt issues during my divorce?

Fortunately, there are options you can try if you want to prevent problems about liabilities split between you and your ex, such as:

  • Selling some of your property or belongings to clear your dues.
  • Getting a separate line of credit under your name to clear joint debts received during your marriage.

Sometimes, clearing debt is impossible, depending on the circumstances. Instead, you could split your property effectively to prevent the other party from missing payments.

You could also adjust spousal support orders to accommodate money owed and stay on top of them. The court could enforce these arrangements after discussing them during divorce proceedings and including them in the agreement.