Divorce is tough enough. There should not be issues about bad debt. Unfortunately, if you
do not approach the debt carefully in a divorce situation, one of you may be holding a larger
share of the bad debt than the other.
It would be so wonderful if divorce were not part of our society. That however is another
issue.
If it were that each spouse could just sign the divorce papers and she takes what is hers
and he takes what is his, divorcing each other could at the very least be financially quick and
painless.
This however is not the case with divorce attorneys having our ‘best interest’ in mind.
If both spouses can maintain civility it is possible to fairly break up the financial liabilities
without the need for the attorney expense. It is in both parties interest to agree to any
terms in writing and communicate any agreements to the creditors.
When it comes to joint credit lines, a letter should be sent to the creditor signed by both
parties that agrees that one of you will no longer be liable for any charges and that persons
name should be removed completely from the credit line. The creditor may or may not agree
to these terms if the credit line was granted on the credit score of the party being removed.
If one party does not agree to sign such a letter, a letter should be sent to the joint creditor
that notes that the credit line should be closed to any new activity.
It is always best to pay in full any joint lines of credit from any marital assets before divorce
proceedings.
Any balances from joint accounts should be transferred to individual accounts before the
divorce is final.
do not approach the debt carefully in a divorce situation, one of you may be holding a larger
share of the bad debt than the other.
It would be so wonderful if divorce were not part of our society. That however is another
issue.
If it were that each spouse could just sign the divorce papers and she takes what is hers
and he takes what is his, divorcing each other could at the very least be financially quick and
painless.
This however is not the case with divorce attorneys having our ‘best interest’ in mind.
If both spouses can maintain civility it is possible to fairly break up the financial liabilities
without the need for the attorney expense. It is in both parties interest to agree to any
terms in writing and communicate any agreements to the creditors.
When it comes to joint credit lines, a letter should be sent to the creditor signed by both
parties that agrees that one of you will no longer be liable for any charges and that persons
name should be removed completely from the credit line. The creditor may or may not agree
to these terms if the credit line was granted on the credit score of the party being removed.
If one party does not agree to sign such a letter, a letter should be sent to the joint creditor
that notes that the credit line should be closed to any new activity.
It is always best to pay in full any joint lines of credit from any marital assets before divorce
proceedings.
Any balances from joint accounts should be transferred to individual accounts before the
divorce is final.
If one spouse has more available
assets or cash, it may be better for
that spouse to pay the balance in full
and negotiate to receive another
marital asset or just forgive the
balance from the other spouse. This
could be more cost effective that
battling it out in court, having to pay
huge attorney fees and will certainly
salvage your good credit rating so
that both of you can move forward
with your lives.
Finding common ground in a divorce
and bad debt does not have to be
difficult. If there are children involved,
it is best to do all that you can so
that it is not difficult. It makes no
assets or cash, it may be better for
that spouse to pay the balance in full
and negotiate to receive another
marital asset or just forgive the
balance from the other spouse. This
could be more cost effective that
battling it out in court, having to pay
huge attorney fees and will certainly
salvage your good credit rating so
that both of you can move forward
with your lives.
Finding common ground in a divorce
and bad debt does not have to be
difficult. If there are children involved,
it is best to do all that you can so
that it is not difficult. It makes no
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Divorce & Bad Debt - Fair & Equitable should be the goal
sense to divorce only to have to deal with each other in an ugly manner months and years
later over bad debt.
If you are in a pre-divorce situation, I pray that you find common ground so that you can
resolve your differences and make your lives work together as a married couple. If you have
tried everything and divorce is the final call, then your divorce and the bad debt should be
split in a manner that is fair and equitable.
later over bad debt.
If you are in a pre-divorce situation, I pray that you find common ground so that you can
resolve your differences and make your lives work together as a married couple. If you have
tried everything and divorce is the final call, then your divorce and the bad debt should be
split in a manner that is fair and equitable.
| Copyright 2005-2008 Debt Credit Learning Center |
God Bless.
Carlos Cruz
Debt Credit Learning Center
Carlos Cruz
Debt Credit Learning Center