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Addressing the topic of debt when preparing for a divorce

On Behalf of | Nov 3, 2022 | Divorce

There could be a multitude of essential topics to consider when developing a strategy to help protect your financial future at the end of your marriage. While topics such as identifying and valuing marital assets may be integral to understanding what is at stake, these might not always be the only relevant factors involved.

One example of a topic it might be helpful to avoid overlooking could involve marital debts and the role they might play in your situation. Including marital debts in your strategy may prove essential to staving off unfavorable results and helping you prepare to approach the next chapter of your life in Minnesota with financial serenity.

Debt in divorce

Marital debts can play a significant role in the outcome of a divorce, and as such, this topic may prove a point of contention during legal proceedings. Some vital topics to address regarding debts in divorce may include:

  • Types of debt: One of the first topics to consider could pertain to knowing some of the most common types of debt at play in a divorce, and this could include anything from credit cards and medical bills to auto loans.
  • Addressing liability: Liability may also be a vital topic to consider, and any types of debt deemed as marital property will likely be subject to the process of property division.
  • Monitoring your credit: Even if your former spouse agrees to responsibility for certain marital debts, keeping watch over your credit may be essential, as creditors may still retain the right to hold you liable should payments fall behind.
  • Available options: If possible, it might be helpful to consider exploring available options to help pay down or eliminate marital debts, as this could mitigate a variety of potentially unfavorable results.

The family home may also play a major role in negotiations, and if you and your spouse have a remaining balance on the mortgage, addressing your options may be vital to knowing how best to approach this asset.

Your financial future

The topic of marital debts may be just one of many vital factors to consider when preparing to dissolve a marriage. When facing a similar change in life, it might not be uncommon to have concerns about how best to prepare for the process, and you could consider seeking guidance in addressing your available options. In doing so, you may feel better prepared to develop a strategy for divorce proceedings that is in line with your interests and needs, and begin working toward cultivating a healthier financial future.