Going through the end of a marriage can be an intimidating process, and the outcome of your divorce could have a significant influence on various areas of your life. If you and your spouse choose to take separate paths, you may have questions about some of the topics to cover to help you prepare for what comes next.
While there are a variety of topics that could play a role in your divorce, one factor that might be helpful to consider could pertain to marital debts. Knowing the role debts might play in your divorce and the risks involved could prove integral to preparing a strategy with which to safeguard your future.
Marital debts in divorce
In equitable distribution states, such as Indiana, any debts deemed marital property will be subject to the process of property division. As such, there are a variety of factors that may prove helpful to address when preparing for negotiations, such as:
- Property division: Seeking insight on the role debts will play during this process could be vital to preparing a strategy for negotiations that best align with your needs and interests.
- Personal liability: Even if the other party accepts responsibility for a marital debt during legal proceedings, if payments fall behind, creditors may still reach out to all parties deemed liable.
- Protecting your credit: As you may still be legally liable for certain marital debts after a divorce, failure to ensure accounts remain up to date could bring about disastrous repercussions to your credit score.
- Bankruptcy as a concern: There is also a chance you might face financial ramifications should your former spouse file for bankruptcy after finalizing the divorce, and if he or she is no longer liable for marital debts via discharge, the responsibility may fall to you.
While paying off or refinancing marital debts could help mitigate issues, this might not always be an option, and finding ways to keep debt-related concerns from wreaking havoc on your credit could prove integral.
Addressing marital debts could prove an integral step in preparing to protect your future during the end of your marriage. Knowing the role debts might play and understanding all your available options could help you prepare a strategy to limit risks and protect your interests. Seeking guidance in covering every vital aspect of divorce could help place you in a better position to make informed choices while you prepare to seek the most favorable outcome possible concerning your future during legal proceedings.