Guest post from Kevin Craig.
Divorce And Bankruptcy- Stay Away From Being Axed By Your Ex’s Debt
written by Kevin Craig
“When a man is in love or in debt, someone else has the advantage”- Bill Balance.
Being on the verge of filing divorce and bankruptcy is certainly not an enviable experience of life and if you are going through similar situation you certainly don’t feel great at all. Divorce and debt problems often go hand in hand and affect each other especially in terms of finance and possessions. Fighting about finances can drain the joy out of a marital life and compel the couple to split up. The disaster continues when your better or worse half runs up overwhelming debts and unfairly you get saddled with your partner’s debt. There are ways to evade such marital damage like debt consolidation or filing for bankruptcy. Both divorce and bankruptcy can cause you mental and financial setbacks. If not possible to mitigate the mental loss, try at least to trim down the financial one. Pull your socks up and make the best of a bad bargain. Consider the few points given below and take help of a divorce attorney to bring your financial life back on track after the disasters of divorce and bankruptcy.
- In a marital relationship both the partners remain equally liable for debts incurred during the marriage. Even the debts accumulated after the divorce petition gets filed, also need to be taken care of both the partners. However it is not as simple as it sounds. Sorting out which debts are separate debts and which are joint debts is a marathon task. In case your partner declares bankruptcy and you don’t, you could be on the hook for the entire total of the debt that the two of you acquired during the marriage. It is better when both the spouses file for joint bankruptcy, so that neither party becomes solely responsible for the marital debt.
- The most intricate issue after the trauma of divorce and bankruptcy is division of marital property and individual property. Marital property, all that is purchased by the couple after marriage will be used for paying off the debt after bankruptcy. Make sure you have enough proofs to exempt your property from bankruptcy and your partner should not claim it as a marital one.
- You can present a certain property of your spouse as a security lien as well. This is another possible way to stop monetary loss for your better half’s debt. You can repay your wife’s/husband’s debt by liquidating this property and can ask court to consider it as a support payment if your spouse fails to pay according to the court orders.
- It is always wise to include indemnity into the divorce degree. It can save you in case the lenders sue you for your spouse’s post-divorce debt. When your partner files insolvency, the court can use this order to protect you.
Both Divorce and Bankruptcy can be unnerving experience for both, you and your partner. Financial crisis can frequently put a marriage on the skids, and bankruptcy can derail a divorce as well. Follow the above mentioned points and save your self from the post bankruptcy financial damage. Make sure you start your new life without a dent in your wallet.