Division of Debt is an Important Factor During a Divorce
The division of debt during divorce proceedings can be very complex. Divorce lawyers hear about incidents where one spouse decided to go on a shopping spree on a mutual credit card when the couple called it quits. The best thing a person can do when a divorce is imminent is to be vigilant in checking the status of credit cards and finances. Don’t let emotions take over you, only to find out months later that thousands more is owed to a creditor.
During divorce proceedings, an individual can explain and show how credit card transactions did not benefit him or her. Placing a freeze on credit cards can be beneficial so that a vindictive spouse does not ruin your credit history. In general, the debt accumulated during the marriage will be divided just like the assets – down the middle. If debts can be traced back to one person’s habits or interests, there can be exceptions.
Many people forget to take their name off mutual credit cards, and this can come back to haunt them months and years in the future. Remember that a divorce decree does not actually transfer the debts in one person’s name; individuals must call the creditor to make the name change and any relevant change of contact information. If one person fails to pay the card, but both names remain on the account, the creditors can come after both accountholders. Your credit score can drop dramatically and take a lot of effort to get back up. So it’s wise to remove your name as soon as possible to prevent harm. It’s also good to do this with bank accounts so that you don’t find that an ex cleaned it out.
Getting legal guidance from a qualified divorce attorney can help individuals get a hold of their finances and assets, and properly determine what is a fair child custody and parenting agreement. An attorney will keep your financial matters confidential.
In California, divorce attorney Gerald Maggio helps clients determine the best course of action to preserve their finances during and after a divorce proceeding. The Maggio Law Firm has helped thousands of clients with their divorce, division of debts and assets, and parenting matters.