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Considering the marital debts in divorce agreements

Couples need to play close attention to their debts when they are dividing their property.

2014-03-11
March 11, 2014 (Press-News.org) Considering the marital debts in divorce agreements

Article provided by Richard Hasley
Visit us at http://www.hasleylaw.com

The breakdown in communication that leads to the end of many marriages can continue causing problems during the divorce proceedings. The spouses may not be able to find any agreements on basic issues, which can prolong the entire divorce. The stress level of the parties will increase, and the entire matter can quickly spin out of control.

Some spouses may actually be able to find an agreement on certain issues with one another, but they need to be sure that they address all of their concerns at this time. Many couples spend a great deal of time in their divorcefocusing on dividing the property or child custody matters, forgetting about the protections they need to put in place for what will happen once the marriage has ended.

When dividing the property, the couple also must discuss how to divide the debt that they have accumulated during the marriage. Many couples will have home or vehicle loans where both spouses are listed on the paperwork. The spouse that keeps that property will need to refinance the loan so that the other individual will be removed from the document. This will release that spouse from any future financial responsibility for the item should the other spouse stop paying the bills. Simply removing the other spouse's name from the documents may not necessarily end the individual's obligations, and could result in problems should one spouse stop paying.

Couples will have other debts as well, including joint credit cards that they may have had together. These accounts need to be frozen before the divorce is filed to prevent one of the spouses from running up excessive charges. It is extremely important that the divorce agreement details how these debts must be paid, and also spells out potential penalties that could be handed down should one spouse refuse to honor the agreement.

There will always be unexpected issues that will arise during your divorce, no matter what steps you take to prepare. You need to be able to move past these issues, and focus on finding a resolution that allows you to be in the best possible position once the divorce is officially final.

If you have questions about what you need to do at this time, you should contact an experienced family law attorney to assist you with your divorce. You may think you have a clear understanding of what will happen, and maybe even have an agreement in place with your spouse on certain matters. It is extremely important that you have an attorney review these agreements, because there will often be additional issues that you will need to resolve before the divorce can be completed.


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[Press-News.org] Considering the marital debts in divorce agreements
Couples need to play close attention to their debts when they are dividing their property.