Divorce in itself is quite messy and troublesome. During marriage if the couple have incurred a debt, both the spouses would be liable to pay and divide the debt after divorce. Divorce apart from making a devastating emotional impact it also causes a huge impact on the family’s finances.
Divorce brings along with it a number of financial complexities and financial hurdles. Handling of debts after divorce is different in different states, no two states in most cases would have the same rules and regulations. In some states both spouses are liable to pay up the entire debt. This could even mean that the creditor may come to you for payment, even if you are unaware of the same.
It would be advisable to receive full financial disclosure during the settlement issues. You should make a proper list of all the required account numbers, amounts owed by both the parties and which is spouse is responsible for paying which debt. It would be easier for you if you get all the copies of credit reports.
While in the process of dividing debts in a divorce, it would wise to understand the entire situation.
Precisely assess debts and liabilities: Firstly as an individual, you should be aware of your personal debts and liabilities. You should know your own credit report. You should call all the required creditors for all shared accounts, which would mean- gas cards, department store cards, credit cards and phone cards. Withdraw your name from jointly held accounts.
Rehabilitate your credit and financial health: Start saving and begin a savings plan. Invest your money wisely, which would give you good returns in the future.
While in the process of dividing debts in a divorce, it would be most advisable and suitable to take the help from a certified divorce financial analyst (CDFA). A certified divorce financial analyst is an individual who has expertise and experience in dealing with financial issues and divorce. The financial analyst comes from a professional background in accounting, financial planning and also has sound legal knowledge.
The analyst is known to go through with an intensive training program, which makes him/her skilled at analyzing and providing advice on the financial issues in relation to divorce and dividing debts in a divorce.
A CDFA would ensure that your divorce does not turn into a financial catastrophe. A CDFA would also be able to assist you in the following areas of concern which are-
While dividing debts in your divorce, it would wise to keep in mind that you should refrain from making issues ugly and lengthy.