While divorce usually brings sufficient psychological chaos to your life, it is also complicated by economic challenges. During marriage, most couples end up handling joint mortgages, credit card debt, and car loan. During divorce, that debt needs to be separated.
Depending on the territory you remain in, there are normally 2 manner in which divorce courts divide up marital debt:
-In community property states, the courts consider about debt incurred throughout the marriage as the debt of both spouses, regardless of whose name is on the debt.
-In other states, such as Tennessee, the courts split martial debt equitably, so partners are typically only responsible for the debt they sustained. If the debt was incurred on a joint credit card or loan, then both partners would divide that debt in divorce. If only one spouse handled debt, only that spouse would certainly be in charge of it in divorce.
Protect Yourself Financially While Going Through Divorce
When you remain in the process of getting divorce, there is a number of steps that you can take to protect yourself if your almost ex-spouse decides to go on a financial spree with a joint account prior to the divorce is completed:
- Cancel joint credit cards. When you recognize that your marital relationship is over, close joint accounts to ensure that any balances can not be additional run up.
- Keep detailed records. For any accounts that are not closed when you make a decision to divorce, keep track of exactly what what charges you incurred and what charges your ex-partner incurred. It is also a smart idea to run a credit record so you know exactly what accounts are opened under your name. You may have to confirm in court later who acquired just what debt.
- File joint-debt documentation with the court early. The earlier you get the debt “on the record” in the divorce process, the much easier it will be for you to later on confirm who owes exactly what.
- Borrow money to pay off joint debt. Think about taking out private loans for your parts of the debt, to make sure that the joint debt is eliminated as well as your part is in your name only. There are great threats of having joint debt remain after the divorce is finished. As an example, if your ex-spouse does not make his or her part of the payments, and even files for bankruptcy, then the financial institution can follow you for the entire amount.
- Build up your own credit. To begin building up your own credit score, the first your step should be getting a new credit card in your name only.
At Conner & Roberts, we understand the complexities of the divorce and how hard it can be to see that your entire life is turning upside down. That’s why you can completely rely on Chattanooga attorneys in this difficult, yet important event. Even if your emotions are taking control over you – keep your head cool when it comes to any financial matters. Conner & Roberts, PLLC, will help you to handle all complicated procedures and protect your rights. For more information, please feel free to contact us today.