There is a lot to think about when going through the divorce process, including what will happen to your assets (such as your home, car and personal property).
While property division is a sticking point in many divorces, don't overlook the fact that it can also be a challenge to divide debt.
Just the same as marital assets, debt must be divided during the divorce process. Most people find that they have to divide more than one type of debt, with the following among the most common:
- Credit card debt. This typically comes down to one thing: Whether the debt is associated with a single or joint account. If both individuals are on the account, it's likely that the debt will be divided.
- Mortgage. This can be a complicated one to work out. In most cases, ownership of the mortgage goes to the person who will be staying in the home. However, some people opt to do away with this altogether, such as by selling the home, paying off the balance and splitting the profit.
- Medical expenses. There is a lot to consider with this type of debt, including where you live and if you were married when you incurred the expense.
While these are not the only types of debt that need addressed during the divorce process, they are among the most common.
Before you do anything, you need to make a list of the debts (both separate and joint) that you're carrying. This will give you what you need to make informed and confident decisions as the process moves forward.
Source: Credit.com, "What Happens to My Debt If I Get a Divorce?," accessed Nov. 27, 2017