Divorce Guide

Dividing debts in a divorce

Debts and liabilities are commonly seen as a major cause of divorce. The married couples part with all that they once shared and the relationships they had, with the huge pressure on their emotional, social and personal lives. A marriage comes with a clause that whatever they acquire after marriage, is to be shared, even if any one of them paid for it. This happens in all the cases whether its property or car, jewellery or furniture. And the same clause applies to profits and losses too. Even in case on loans, at the time of divorce, both of the partners are liable to pay it back.

Debt division is one of the major issues which are cropping up today, which concern both the man and the woman.

Let us go through a list of what you can and should take care regarding dividing your debts:

1. Order for credit reports: Order for reports and see how much credits do you owe and who is the one, who used those.
2. Joint Credit cards: Cancelling all credit cards will help in any future quarrel or money dispute, of who will be paying the credit card bills.
3. Review all your bills: make sure you both have paid all the impending bills before parting; else the person in the record will be the one who pays them inviting heated debates
4. Joint loans: if you have had any joint loans and you are paying for, you have to keep in mind that the loan will has to be paid for by both the parties after a divorce. This can only avoided if the loan retrieving company agrees to have a contract to get paid by one.
5. Defaulters List: Check to see that you and your partner is not present in any loan payment as defaulting. This can bring trouble in the future credits. Clear your loan history.

To get away from all the liabilities before the divorce:

1. Pay off all your debts before filing for divorce.
2. Sell off all the assets which you can to liquidate your money in to cash and give back money to all the creditors, in case of any due. Make sure you issue cheques or a letter of a request to pay them later fixing a time limit and the installments the money will be paid back in.
3. Transferring of the debt: If you want to transfer all the debts to one of the spouse, this can be done if your spouse is financially much stronger and viable. This method of dividing between your funds can be mutually agreed upon or can be settled in court.

Dividing your debts can be done with mutual agreement or settlement or a professional lawyer should be consulted with regarding the specific laws of the land.

Divorce and Children
Divorce Laws
Financial Issues
Legal Information
Divorce in Switzerland
Divorce Advice for Europeans
Post Divorce Issues
Divorceand Legal Assistance