So you finally called it quits and are both ready to move on to another chapter of your lives. Divorce is often a complicated process, especially when money is involved. But it doesn’t have to be that way.
Dividing the ex-couples assets and liabilities can go with or without a mediator or a neutral party. This is if they agree on how the process will go. If not, they can ask for help from the courts.
Two things will be divided between the ex-couple when divorce is considered, namely, properties and debts.
Your properties can be divided depending on the ruling law on the state you’re in. For example, Community Property States say that every asset obtained during the marriage should be divided equitably between you and your ex-spouse.
For easier splitting, you and your ex-partner can also barter and agree on which asset one will or will not have.
Another way is to sell every asset, so the splitting of properties would be more comfortable and manageable in a monetary equivalent.
Although it might vary depending on the state, marital debts are generally considered as those accumulated during the marriage.
Not sure what to do with your ex-home? The best choice is to sell it and divide the money between the two of you. Some relatives might tell you to keep it for your children’s sake, but to make the slate clean and for everyone to move on faster, selling the house is better.
As you wait for the house to be sold off, talk with your ex-partner about fair agreements of how you’ll pay the mortgage so your credit scores will not be negatively affected. If you decide to keep the house, you can buy out your ex-spouse and remove their name from the loan agreement.
With 46.3% of married couples who have a medical bankruptcy problem, it’s not surprising that medical debt is also considered in a divorce.
How you divide your medical debt with your ex depends on which state you two are in. If it’s in the Community Property States such as Arizona and New Mexico, you need to pay for your ex-partner’s debt. If you’re on Equal Division Property States, the court will review the case and tell you how you should proceed.
Auto Loan Debt
Like the mortgage debt, selling the car is the greatest option to avoid more complications. Divide and sell rather than get stuck arguing who will use the car and pay the loan.
You can also agree to pay off all the debt by acquiring a loan. There are trusted online loan services such as that of Payday Depot nowadays that you can look into.
Credit Card Debt
If you’re using a joint credit card, then the debt can be split. It doesn’t matter whose name is on the card or who makes the payment.
Are You Ready for a Divorce?
Divorce is an expensive process on its own. With the addition of dividing assets and debts, it becomes even pricier. That is why some couples decide to hold off going through the divorce’s legal requirements and just agree to separate. Some couples do this so they can save up to prepare for the expected expenses.
Carson Derrow 2021-02-17 06:23:23