How To Divide Debt During A Divorce

Divorce is undeniably challenging, especially when it comes to dividing debt between one another. Understanding how to divide debt is important to know so that it is fair between you and your ex-spouse. Here’s what you need to know:

1. How State Laws Affect Debt Division: State laws play a role in the debt division process. There are 2 different types of states that handle debt division: community property states and equitable distribution states. Community property is that the joint is debt regardless of whose name is on what. Equitable division is where each account is taken into consideration of the debt. 
2. Strategies for Negotiating Debt Division: Paying off your debts before the divorce is final can help to simplify the process. It can also help to outline who is responsible for what debt. 
3. Protecting Your Credit Score: Divorce and debt can affect your credit score if it’s not managed effectively. You should be regularly monitoring your credit report and closing any joint accounts you have with your spouse. 
4. The Role of A Financial Planner: Financial planners can suggest strategies for dividing assets and debt. They can also help to create a financial plan that works well for both you and your ex-spouse. 

Let me be your financial advocate as you navigate the divorce process. As a Certified Divorce Financial Analyst, CDFA® I can help you avoid costly mistakes and educate you on current and future budgets, provide a financial road map, and help you understand what assets you have, what you spend, where you spend it, and more.

You don't have to go through this alone.

Contact me today at 716-800-4290 to schedule your first appointment.