Going through a divorce means that you and your ex have to split up everything financial that’s become entangled during the marriage. This isn’t an easy undertaking, but it’s one that’s necessary.
One thing that some people don’t realize is that the property division process involves more than just splitting up the assets. You also have to divide the marital debts, which can be just as challenging as dividing the assets.
What happens if debts aren’t paid?
Marital debts have to be paid or creditors can come after you and your spouse. Creditors aren’t part of the divorce, so they don’t have to abide by the division of debts. This means that if your ex is assigned a debt and doesn’t pay it, the creditor can still come after you. They can report the non-payment to credit bureaus, which can have a negative effect on your credit score.
What is the alternative?
There’s sometimes an alternative to assigning the debts during property division. This is to liquidate assets so debts can be paid off without having to assign them to either party. Paying off debts can give you and your ex a fresh financial start, and it will take away the chance of negative credit hits.
Throughout the property division process, you have to ensure you’re doing what’s in your best interests. Thinking logically about how to handle each decision can make this easier. It may also be beneficial if you have someone on your side who can help you consider how various options will affect your future.