What Actually Happens to Your Debt After You Get Divorced! (Pt 1)

Credit card debt is a big one – and causes a lot of problems for divorcing couples.

For most people, when they think about what they need to address during a divorce, they tend to think about dividing up their stuff. Who gets the car? Who keeps the house? Who inherits the camper? But it’s amazing how few people think about their debts, and how a divorce means dividing those as well. So while you’re wondering about who gets to keep all of those valuable items you and your spouse own, you should also spend some time thinking about who gets to pay off the credit card, and who assumes the car payment. Because those are just as important.

Some debts are simple to divide.

Although there’s no hard and fast rule about debt division that applies to every divorce, there are a few things that are common enough. For example, if a married couple owns two cars, and each of them uses one car as their own personal vehicle, then chances are, each of them will get to keep their own car. If both cars are in the process of being paid off, then chances are you’ll end up paying for your car after the divorce and your ex will end up paying for their car. (Although it doesn’t always work out this way, depending on a whole host of factors.)

Some are very complicated.

There are cases where a couple parts ways and one person gets to assume both car payments, even although they don’t get to keep both cars. This usually happens in cases where one person was the breadwinner and the other was the stay-at-home parent. Sometimes payments like these are factored into the alimony agreement, and sometimes the court assigns them in addition to the alimony agreement. You’ll need to talk to your attorney about your finances and find out what is the most reasonable settlement for you.

Credit card debt is a good example of this

Another example of debt that can be either simple or complex, depending on the situation, is credit card debt. If the credit card is in only your spouse’s name, and they bought only items they could use or benefit from (like clothes, jewelry, movies they went to without you, and vacations they took with their own friends and not with you) then they’re likely to end up paying the balance. But what if the card is in both your names? What if you both bought things that has resulted in thousands of dollars worth of debt? Who’s responsible for that? This is where it gets complicated.

A good attorney can help you figure this out.

Fighting about who gets what (and who gets stuck with what debts) is incredibly stressful. When your spouse is angry and spiteful, or won’t work with you on creating a fair division of your marital debts, the process becomes even more painful! That’s where we come in. If you choose to hire a skilled family law attorney with lots of experience to handle your divorce, you can rest assured that your future is in good hands. So if you need help with any aspect of this process, call 866 766 5245 today and talk to someone who can help! And don’t forget to join us next time for more info on what happens to your debts when you get divorced.