Your marriage is about to dissolve in the divorce court. This is a tremendously emotional time in the lives of both partners. Both will need to learn about how financial issues affect each partner. You may want legal advice to help you with these issues.
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
There are issues if you are responsible together for a mortgage. Home issues need to be carefully managed particularly if there is alimony and child support involved. You may decide to sell the home or to let one partner buy it. That would take care of that joint loan.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be smart to pay off all your joint debts if at all possible even if some things have to be sold. That way you are then only responsible for your own debts. You want to leave the marriage knowing that you have a secure financial base to start the next phase of your life.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order. - 16492
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
There are issues if you are responsible together for a mortgage. Home issues need to be carefully managed particularly if there is alimony and child support involved. You may decide to sell the home or to let one partner buy it. That would take care of that joint loan.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be smart to pay off all your joint debts if at all possible even if some things have to be sold. That way you are then only responsible for your own debts. You want to leave the marriage knowing that you have a secure financial base to start the next phase of your life.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order. - 16492
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