Divorce doesn’t do away with debts

Married couples often open a variety of credit accounts with each other. This can include things like the mortgage and car note, but it can also involve other types of credit like credit cards. There are also other debts, such as doctor, utility, tax and other bills that they have to pay. 

Many people don’t realize that once they make the decision to divorce, the property division process handles the assets the couple owns, as well as the debts they have. Going through a divorce doesn’t mean these debts go away. 

Asset liquidation may enable debt payoff

Some people who are in this position opt to liquidate their assets so they can pay off debts. This enables both individuals to have less financial responsibility from the union once they end their marriage. 

In some cases, there will still be marital debts left. These must be divided between the two parties as part of the property division process. It’s critical that each person pays what they’re responsible for because creditors can still hold both parties liable for these debts. This is because the divorce is a civil matter that the creditors aren’t part of.

Anyone who’s going through a divorce should ensure they protect their own interests, which includes looking after their financial future. Trying to minimize the chance of their ex being able to affect their credit report by not paying the debts assigned to the ex might be beneficial. This could be easier if they have someone on their side to assist with this legal matter.