Divorce

Divorce and debt.  Neither one is pleasant; together, they can spell disaster.  After all, the same amount of income has to be spent maintaining two separate households where there used to be just one.

 

Debts incurred before the marital breakup must be handled right in order to protect the parties involved.  Many people realize too late that a divorce decree doesn’t mean anything to creditors when it comes to joint credit accounts.  Even though a divorce settlement might specify that one or the other spouse is to be responsible for paying off a certain debt, creditors have the right to expect payment from either party. 

 

The best solution might be to arrange together to pay off all joint debts before the divorce agreement is signed.  Pay off the amounts you decide each one is responsible for, close the accounts, and then go on with life separately.  The best advice is to retain a divorce attorney and have him/her advise you.