Understanding the role debt might play during a divorce
Dissolving a marriage can be a stressful and intimidating experience that could leave you facing a need to make a variety of difficult choices about your future. Knowing every vital factor to address to help you prepare to make these choices during the subsequent process can also be somewhat complex at times.
When addressing the process of property division, you may feel that identifying all martial assets and the values thereof could prove imperative. While this might be integral, it could also be in your best interests to ask questions about the role martial debts might play during your divorce.
Knowing the influence marital debts could have on the outcome of your divorce could help place you in a better position to make informed choices about your situation. Some topics to consider regarding debt in divorce could include:
- Community property: In California, assets and debts acquired during a marriage are typically deemed community property and as such, may be split evenly among both parties during a divorce.
- Types of debt: Types of debts that might have a significant influence on the outcome of your divorce may include mortgage, credit card, medical and auto loan debts.
- Separation: It could also be helpful to note that if you and your spouse enter legal separation prior to deciding to divorce, any debts accrued during this time may also be community property.
- Bankruptcy: After finalizing a divorce, should your former spouse file for bankruptcy, any relief obtained will not be extended to you, and you may still be held liable for monetary obligations.
It might not always be possible or preferable to pay off debts prior to going through a divorce. If you are liable for financial obligations, assuming your soon-to-be ex-spouse will make payments might not prove advisable.
Preparing for the process
Knowing the role marital debts might play during the end of your marriage may just be one example of a vital topic to address when preparing for what comes next. With a great deal at stake, you may benefit from seeking insight on what to expect from the process. Seeking guidance in addressing every essential component of preparing to dissolve a marriage could help place you in a better position in which to safeguard your future and approach the next stage of your life with confidence and peace of mind.