The property division process of a divorce is not limited to assets. Some of the debts you acquired during the marriage are subject to division as well. Marital debts, as they are commonly known, will be split between you and your ex, depending on the particulars of your situation.
You can agree with your spouse on the way forward regarding the division of these debts if you do not have a legally binding agreement like a prenup or postnup addressing such matters. Otherwise, the court will step in to make decisions regarding the division of marital debt in line with state laws.
It’s important to note that while you may have a legal agreement or court order specifying the division of debts, creditors are not bound by these arrangements. In other words, creditors may turn to you for payment and even initiate recovery measures if your ex-spouse fails to uphold their responsibility for a debt that has your name on it, like a car loan or mortgage.
What are your options?
In such cases, you can explore various options, like communicating with your ex to find a resolution for these debts. You may also want to consider refinancing joint loans, transferring balances to individual accounts or negotiating with creditors to discuss the situation and look at potential solutions. Some creditors may be willing to release one party from the obligation after reviewing the prevailing situation.
Remember, each divorce is unique, and the best course of action depends on the specific circumstances of your case. Seeking legal guidance early in the process can help you make informed decisions and protect your financial interests during and after the divorce.