It’s very common to think about asset division when getting a divorce. But what about your debts? While it may be exciting hearing about all the stuff you get to keep when getting a divorce, being stuck with debt is the other side of the story you may also want to hear. It’s important you consider your finances when getting a divorce. Westlake Village property division attorney Stephanie L. Mahdavi can help you embrace this next chapter in your life and make the whole divorce process easier for you.
Debt and assets can be divided equally or unequally in California. The spouse who keeps most of the assets is generally assigned most of the debt. However, if the divorce process is not amicable and spouses don’t seem to agree, chances are the court will assign the debt to whoever they think is more appropriate. California also recognizes separate property, which can’t be used to pay debt. If there was pre-marital debt, the spouse that helped pay out the particular debt may be entitled to reimbursement when filing for a divorce.
The divorce settlement shows the assigned debt, that is the debt each party is responsible to pay. The problem is that when a party fails to pay the debt, creditors may start harassing the other party so you may need to request the court to enforce the divorce settlement. Also, if your ex-spouse filed for bankruptcy, creditors may go after you. This is why a Westlake Village property division attorney comes in handy. It’ll alleviate all the financial headaches associated with debt and property division.
It’s important to remember credit card companies don’t care much about divorce decrees. In other words, if you have a jointly held credit card, you will be responsible for your ex’s debt. It’s important the marriage ends with no join debt otherwise you will be liable for your ex’s debt. Cancel all your joint cards immediately. Whether you choose to pay these joint accounts or divide the debt on individual cards, make sure you take this important step before filing for a divorce.
It can be devastating starting this new chapter in your life with jointly held debt. You are responsible for debt incurred during the marriage. However, if the credit card is only under one spouse’s name, the other cardholder is not responsible to pay the debt. If your ex-decides to file for bankruptcy, creditors will harass you to no end. There are also interests and other penalties that may apply. Although provisions can be included in the divorce agreement, that means you will have to go back to court and that can be costly and time-consuming.
Debt is often inevitable and so is divorce but the good thing is you can hire legal help and make the whole process easier. We are here for you. Call us and schedule your free initial case evaluation.