What happens to your debts when you get divorced?

What happens to your debts when you get divorced?

Although there are debts that are very easy to attribute to each member of a couple, there are others that they can share and that it will be difficult to distribute at the time of a legal separation.

Step by step, how to settle your debts with the IRS if you never pay the tax closing date Making the decision to separate, to get divorced officially , does not only include having to divide the properties and assets that are have , they also have to reach an agreement on the debts that the couple has. All of this is agreed upon in the divorce papers, before it is signed.

Debts that a couple may have to deal with include mortgages, credit cards, car loans, student loans, personal loans, legal fees , and any other debt including family loans.

According to experts , there are debts that are very clear to define who is responsible for paying, but there are others, where there is a shared responsibility, where the distribution can be more confusing, for example, in credit cards.

According to Kiplinger’s experts, debt incurred during a marriage is generally the joint responsibility of both parties, as long as they are both co-signers of the credit cards.

In this case, what is recommended to do is divide the debt by balance and establish a specific date, after which, that debt should not increase any more, since there is already a legal separation.

Once the date of separation has been established , it must be clarified that, from that moment on, the debt contracted by one of the spouses will be solely their responsibility.

The most recommended option in this regard is to close all credit card accounts held jointly. Taking this action will prevent your ex-spouse from incurring a debt in your name. Then, the most viable thing is to open a new credit card and use it for the personal expenses that the person requires for their future.

Finally, it is recommended to establish a payment plan and then process a copy of your credit report so that you can compare your list of debts with the information provided in your official credit report to ensure that there are no surprises and that the debts that are not paid in full, will be the responsibility of the other spouse.

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