How you should handle debt when you divorce

May 28, 2020 | Family Law

Many spouses who divorce cite financial woes as one of the reasons for their split. It’s not uncommon for spouses to engage in financial infidelity, whereby they make more or less than their partner is aware. Husbands and wives may also secretly take out credit cards or loans without telling their spouse. All of this can make for complex negotiations when a couple of divorces.

While many joint debts get split up between the two of you, you may avoid having to take on some of those bills if your souse was secretly racking up debt without your knowledge.

Prenuptial agreements are great for tools that couples can use to keep their assets and debts coming into the marriage separate. It may not help when it comes to any joint ones that you incurred after you two married, though.

One of the best things that a spouse can do after they marry if they’re concerned that their husband or wife is accumulating debt is to remove themselves from any joint credit accounts. Spouses should be proactive in asking to be taken off as a cardholder, authorized user, or co-signer as part of this process. By doing this, you send a clear message to any family law judge that may handle your case that you didn’t want anything to do with running up these balances.

If you’re facing divorce and you and your spouse have significant debt, then you may want to sit down and negotiate a plan for paying it down before finalizing your divorce. Pursuing debt consolidation may be an ideal option. It allows you to group your different bills and make a single monthly payment.

One benefit of paying off your debts before finalizing your Illinois divorce is that you don’t have to worry about the unexpected. You’ll know what you owe and that the payment amount will be consistent so long as you make timely payments.

Debt can accumulate quickly. It can feel smothering trying to find a way to pay it off. The best thing that you and your spouse can do if you’re preparing to divorce and find yourself in debt here in Rockford is to have a family law attorney work to help you achieve that fresh start that you desire after your divorce.