What Happens to My Debt When I Get Divorced?

divorce lawyers in Grand Rapids

If you and your soon to be ex-spouse have agreed on divorce, there are going to be a few things that may or may not need to be addressed depending on your circumstances. Some of these things include how you plan to divide up your time up with your kids, whether child support will need to be paid out, or what you two plan to do with all the debt that has accrued over the course of your relationship. These can be some pretty touchy subjects to discuss so you may want to have your Grand Rapids, MI divorce lawyer sit in and to provide information and advice that can get these matters resolved quickly and without having a heated argument develop.

 

How to decide who pays what?

 

As mentioned, one thing that is going to need to be addressed prior to finalizing your divorce is your finances and debts. In many marriages, couples often sign both their names when they acquire a credit card, house, or even a vehicle which means both are equally responsible for paying back the money owed. Essentially, you will need to decide who is going to be responsible for what and make arrangements so that your bills continue to get paid.

 

Some things we think you should keep in mind, though, when making these decisions and designating who pays what is:

 

  1. Just because you and your ex-partner have come to terms with how your debt is going to be split, remember, that doesn’t exactly mean they will keep their word. And if payments lapse or an account goes into default, it will affect you. While your divorce papers might stipulate that your ex-husband is responsible for the car bill doesn’t actually guarantee that he will pay it.
  2. If you change your name, address, or notify your lenders of your divorce, it won’t change the fact that you still owe the remaining balance on the vehicle you no longer have in your possession or the furniture that your ex-partner was awarded. Although it sounds a bit unfair, lenders generally aren’t sympathetic to a couple’s divorce as they are only concerned with getting the money that is owed to them.
  3. If you and your ex-spouse took out a loan for one reason or another and payments are missed, lenders will continue to report the loan activity to credit bureaus, regardless of the fact that you are going through a divorce or it has already been finalized.

 

Is there any way I can protect my credit after a divorce?

 

According to The Balance, you have two potential options, although there may be more that your divorce lawyer can provide you with. They are as follows:

 

  1. divorce attorneys in Grand Rapids
    A divorce lawyer can help you and your spouse decide on how you want to split up your accrued debt.

    Attempt to get your name taken off the loan. How can you do this? Well, considering your credit was probably used to get the loan approved which means lenders won’t just remove your name. What can you do, however, is have the lender re-run your ex’s credit, with their permission, of course, to see if they qualify alone and then attempt to get your name removed.

  2. Make sure the lender gets paid. It sounds easy enough but it can be a challenge when you don’t have possession of the property you are paying on or you don’t have the funds.

 

There are many other things that will arise in your divorce and it is always a good idea to hire a divorce lawyer who can help you through each and every one of these things that might arise. If you are in search of a reliable and dedicated lawyer in Grand Rapids, Michigan, Gordon & Hess, PLC is available to assist you. You can contact this firm now by calling 616-272-3331 to get your consultation scheduled.

 


By | 9:30 am | Categories: Divorce News | 0 Comments

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