Married couples often amass considerable assets, but they’re likely also going to have some debts. Just because the couple decides to go through a divorce doesn’t mean that the debts just go away. Instead, they must be handled during the property division process.
One thing to remember when you’re discussing debts during the property division process is that divorce is a civil process between spouses. The creditors aren’t part of that case, so they don’t have to abide by the divorce order. That fact must be carefully considered throughout the property division process.
Options for handling debts
One option is to liquidate assets if they’re available so the debts can be paid. This can give both parties a chance for a fresh financial start. It may also take some of the strain off the budget as you learn to live on only your income.
Another option is to divide the debts like you divide the assets. The caveat to this is that if one party fails to pay joint debts, both parties can face the impact on their credit report because creditors aren’t required to follow the debt assignment that’s set during divorce.
As you’re exploring the options for property division, take the time to think about what you can realistically handle on your income. This situation is best handled with logical thinking instead of emotional focus. It may be beneficial to work with someone who’s familiar with these matters so they can assist with exploring the options that are available and how they will impact your future.