In many areas, couples that divorce must divide their assets in half, leaving each spouse with 50% of everything they own. Couples must usually divide their debts in half, too. If you are getting divorced and have debt, you might wonder about how this works. Here is some information to help you learn how to handle and divide the debts you have when getting divorced.
Find Out What Debts You Have
One vital thing you must do when getting divorced is to find out what debts you have. While you might know exactly how much you owe, some people do not. There are times when spouses have no idea about the debt they owe, and they often feel shocked when they find out. If you must dig around to find out, then start searching. It is extremely challenging to divide debt if you do not have a complete list to start with when divorcing.
Determine The Best Way To Split Them
If your state requires that you divide your debts in half between each spouse, you must figure out the best way to handle this event. You might want to write a list of all the debts, along with the spouse's name the debt is in. If you each have around 50% of the debts in your names, you can divide the debt like that.
Try To Put The Debts In Each Person's Name
The best way to divide debt is by making sure each person has their 50% in their name. If necessary, you could each take a consolidation loan or personal loan to pay off the debt you are responsible for paying. By doing this, you can prevent problems in the future.
Make Sure The Divorce Decree States The Division Agreement
It is always vital to make sure that your divorce decree clearly states the division plan. If your decree states how you are dividing your debts, you can prevent disputes in the future. By stating this information in your decree, you will have a court-ordered document to use if you encounter debt problems after your divorce, as a divorce decree always holds up in court.
If you do not have any debts when getting divorced, you will face fewer challenges. However, many couples have debts, and their lawyers can help the couples divide them. If you have questions about divorce law or dividing debts, talk to a divorce law attorney.