When spouses choose to divorce, one of their primary concerns is likely to be their assets, which will have to be divided. However, what many often forget to consider are their shared debts, such as home mortgages, loans for cars, and credit card debts. While these might not have seemed like a big deal to you as a married couple with two sources of income, it can become a real problem if you are the one left with a larger share of the bill.
If you are in the process of divorcing your spouse, here is what you need to know about your shared debts:
Splitting the Bill
Both spouses should have equal access to the family’s financial data, which will help reach a fair agreement when it comes to dividing debts and assets. As part of your divorce judgment, the court will use the information you and your spouse provide to determine who will be responsible for paying which bills. In some cases, the court might try to use assets and debt to balance each other out, assigning more debts to the party who receives the most property or assets.
If you have a prenuptial agreement, your settlement will be determined by what you and your spouse previously agreed to.
What Happens if a Spouse Does Not Pay?
Unfortunately, spouses do not always pay the bills they were assigned in their divorce settlement, which means the creditors might start hounding you. If this happens to you, you can petition the court to enforce the divorce agreement. Your spouse will be required to appear in court to explain why he or she is not following the order and might even be punished with fines or jail time.
If you want to avoid the complexities debt brings to a divorce case, if possible, you might want to consider attempting to clear it before or during your divorce. This will give you and your future ex-spouse a clear picture of your finances, giving both of you the chance to go through this process without breaking the bank.
Manchester Divorce Attorney
At Sekella Law, PLLC, our Manchester divorce attorneys have helped countless individuals recover generous property divisions as you go through the process of dissolving your marriage. Property and debt division might seem straightforward, but a wide variety of factors can influence this crucial aspect. You will need a skilled and experienced attorney to guide you through this, so do not hesitate to reach out to us.
Contact Sekella Law, PLLC today at (603) 686-7229 for a complimentary case review with a knowledgeable member of our team and get the answers you seek.