Divorce is tough enough.
There should not be issues about bad debt. Unfortunately, if you do not approach the debt carefully in a divorce situation, one of you may be holding a larger share of the bad debt than the other.
It would be so wonderful if divorce were not part of our society. That however is another issue.
If it were that each spouse could just sign the divorce papers and she takes what is hers and he takes what is his, divorcing each other could at the very least be financially quick and painless.
This however is not the case with divorce attorneys having our ‘best interest’ in mind.
If both spouses can maintain civility it is possible to fairly break up the financial liabilities without the need for the attorney expense. It is in both parties interest to agree to any terms in writing and communicate any agreements to the creditors.
When it comes to joint credit lines, a letter should be sent to the creditor signed by both parties that agrees that one of you will no longer be liable for any charges and that persons name should be removed completely from the credit line. The creditor may or may not agree to these terms if the credit line was granted on the credit score of the party being removed.
If one party does not agree to sign such a letter, a letter should be sent to the joint creditor that notes that the credit line should be closed to any new activity.
It is always best to pay in full any joint lines of credit from any marital assets before divorce proceedings.
Any balances from joint accounts should be transferred to individual accounts before the divorce is final.
If one spouse has more available assets or cash, it may be better for that spouse to pay the balance in full and negotiate to receive another marital asset or just forgive the balance from the other spouse. This could be more cost effective that battling it out in court, having to pay huge attorney fees and will certainly salvage your good credit rating so that both of you can move forward with your lives.
Finding common ground in a divorce and bad debt does not have to be difficult. If there are children involved, it is best to do all that you can so that it is not difficult. It makes no sense to divorce only to have to deal with each other in an ugly manner months and years later over bad debt.
If you are in a pre-divorce situation, I pray that you find common ground so that you can resolve your differences and make your lives work together as a married couple. If you have tried everything and divorce is the final call, then your divorce and the bad debt should be split in a manner that is fair and equitable.
God Bless
Carlos Cruz
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