On Your Side

Covering every aspect of dealing with debt in divorce

On Behalf of | Dec 23, 2019 | Divorce

At the end of a marriage, individuals in New Jersey and across the nation may encounter a variety of difficult choices, some of which could have a lingering impact on their lives. Those who worry about how the outcome of their divorce might affect their financial well-being may wish to know more about how best to prepare to protect this aspect of life, but with numerous factors to consider, such a process can be somewhat complex. One aspect that should not be overlooked pertains to how marital debts will be handled during divorce.

Debt can have a significant impact on the outcome of a divorce and understanding the difference between joint and separate debt could prove imperative. Any type of debt that is deemed joint property will likely be subject to the process of property division. Taking steps to identify joint debt and determine current outstanding balances could prove a vital step in forming a strategy for subsequent legal proceedings.

Even if one party agrees to responsibility for certain debts during divorce proceedings, the other person may still find it advisable to keep watch on matters to ensure payments do not fall behind. Regardless of what is stated in the terms of a divorce decree, creditors may still hold the right to seek repayment on past due debts from all liable parties. As joint accounts that fall past due could have a detrimental impact on each person’s credit score, taking steps to prevent such an outcome could prove essential.

Outstanding debts can play a significant role in the outcome of a divorce. Those who wish to better understand all their available options concerning marital debts and how best to prepare to protect their financial futures could find it helpful to speak with a family law attorney for guidance on forming a strategy for what comes next. An attorney in New Jersey can provide a client with advice on every crucial aspect to address and subsequently assist him or her in seeking the most favorable outcome achievable during divorce proceedings.