Debt and divorce: what you need to know about debt sharing
Divorce can be a very difficult situation to deal with, and dividing the debt can be one of the most complicated aspects. Debt can be an important part of the separation, and it is important to understand how it is shared between both parties. In this article, we'll look at the key considerations to make when dividing debt between ex-spouses.
Understanding joint debts and personal debts
When a debt is incurred by a married couple, it is important to understand what the nature of the debt is. Joint debts are debts contracted by the couple jointly, while personal debts are those contracted by only one spouse. Joint debts are generally the most common and can include mortgages, car loans, and joint credit cards. Personal debts can include student loans, personal loans and individual credit cards.
How are debts shared during divorce?
When a couple divorces, joint debts and personal debts must be divided between both parties. How debts are divided depends on the law of the state in which the divorce is filed. In some states, debts are shared based on the parties' contribution to the debt. In other states, debts are shared in proportion to the parties' contribution to the debt.
How are debts managed after divorce?
After divorce, joint and personal debts must be managed separately. Joint debts must be settled by both parties, even if they have been shared between them. Personal debts must be paid by the spouse who incurred them.
How can I get help managing my debt?
If you are having difficulty managing your debt after divorce, there are organizations that can help you. Debt help agencies can help you develop a repayment plan and negotiate with your creditors. They can also help you understand your rights and obligations regarding debt and divorce. To find out more, visit mes Conseils Finance blog.