It is difficult to break even in many divorces. This means that, when it comes to divorce, many people will have debts to pay off and might wonder how they can do so. If finances were an issue during your marriage, you might find that they are also an issue when it comes to your divorce – namely, your spouse paying off debts that they owe.
Marital debt, like assets, are split during the divorce process. What happens when your spouse has been taking on car loans during the marriage and now you are divorcing? Now they will be forced to take care of these debts and you might fear they will not do so. If your name is on any of these agreements, it could spell trouble for you – and creditors who now have your name.
When it comes to divorce, this is why it is important to sit down and write out a full financial disclosure so that there are no surprises. This is an easy way for you and your spouse to list all account numbers, amounts owed, and who is responsible for paying them.
If your ex won’t pay, you don’t want it to come back on you. You might be able to ask for an indemnity clause to be added to your divorce settlement. This allows you to take your spouse back to court if they do not pay what they are supposed to. This is something you can talk about with your attorney.
You may also be able to insist that any property under a financial agreement can be refinanced in your spouse’s name. This means that you would be removed from anything that they owe money on. When it comes to final decrees of divorce, where many of these issues are listed, it is only a piece of paper and your spouse might not always abide. This is why you have to protect yourself.
You have options when it comes to your divorce. We want to help. At the Montes Law Firm, we can stand by your side no matter what you are going through and get you the best results. Call us for more information.