Divorce and debt brings about many changes for both parties involved. While divorce can be emotionally trying, those going through a divorce in West Virginia must prepare themselves for all the changes they will go through, including those changes related to finance. There are many financial considerations during divorce, including spousal support, asset division, and child support. But one thing that many divorcing couples don’t think about is debt. Before one decides to divorce, it’s helpful to understand how the couple’s debt will be dealt with.
Debt and divorce
The first step in dealing with debt is to make a list of all money owed. The list should include the mortgage, credit cards, all loans, legal fees owed, tax debt, and any other debt not previously mentioned. It’s important to understand that debt incurred during a marriage is usually considered marital debt, but things like student loans and car loans tend to be easier to divide.
Credit card debt is challenging, especially if both names are linked to the account. In some cases, an agreement can be arranged between the parties to decide who takes responsibility for the debt. If no agreement is reached, the court will decide who is responsible. The divorcing parties may decide to sell assets to pay off the debt or to transfer the debt to an account not linked with the other party.
Legal assistance is the key to success
No one should feel like they are alone when heading into the divorce process. A West Virginia family law attorney can provide essential information to help one prepare for marriage dissolution. When it comes to financial issues, divorce can be extremely difficult, but knowing that one has sound legal advice can make the process much easier.