People think of property division as handling only the assets of the marriage, but there’s more that goes into these proceedings. It’s also necessary to divide the debts that were amassed during the marriage.
It’s necessary for you to think carefully about how you’re going to handle the debts. There are several things that you should know about the division of debts when you divorce.
Debts acquired in the marriage must be paid or assigned
Each debt that’s involved in the property division process must be either paid off or assigned to one party. If there isn’t enough marital cash to pay those debts off, there might be enough assets to liquidate to pay them off. It’s typically best if you can get those debts paid off.
The other option is to divide the debts between you and your ex. This comes with a risk of one party not paying their share, which can result in the credit report of each party taking a negative hit. This is possible because creditors aren’t a party in the divorce, so they aren’t bound by the terms of the property division process.
Determining how to handle assets and debts can be a stressful part of divorce. Each decision you make can impact your life now and into the future. It may be beneficial to discuss your options with someone who’s familiar with these matters so you can decide how to move forward throughout the divorce.
