Divorce And Debt: The Top 7 Tips You Must Put Into Action, Now!
Divorce and debt or divorce and bankruptcy: Debt elimination secrets and facts to know before, during and after divorce. 7 Tips to making it through divorce with your finances intact!
Divorce and bankruptcy do not work well together. Many of the marital debt and debt elimination tips here are advisable for couples headed for divorce. In fact, they are often at opposite corners of the ring.
Divorce is so prevalent now with an estimated 54% of the population getting divorced each year. This translates to around 37% of all marriages ending in divorce and bankruptcy each year.
Financial problems are listed as one of the primary reasons that many marriages end in divorce. Interestingly, financial problems are listed right alongside communication problems. And these two issues tend to go hand in hand. Financial problems can lead to a breakdown in communications and vice versa.
No one wants to think about divorce and debt; certainly not at the same time. Thinking about the possibility of your marriage ending in divorce is not pleasant, but there is a certain amount of reality that is necessary.
Divorce is one reason why prenuptial agreements were created. It is not a matter of asking for disaster to strike, but more like preparing for the storm that may never come.
However, if divorce does come you have a plan in place. Many of the tips here are not only advisable for couples headed for divorce, but also for couples who are living in wedded bliss as well. This is just good, solid, common sense advice.
Personal debt is doubled when marriage comes into the picture. There are some things that you can do if you find yourself on the indebted side of a divorce.
Divorce And Debt Or Divorce And Bankruptcy, Top 7 Debt Elimination Secrets And Tips:
- Cancel any joint credit cards as soon as you know that your marriage going to end in divorce. Include all major credit cards, fuel charge cards and department store cards.
At some point you should get a credit card that in only in your name so that you can build credit for yourself but have a total credit card debt elimination plan already in place.
- If your spouse does not or can not pay their bills, even if it was assigned as solely their debt in the divorce agreement, the credit card company or creditor can force you to pay.
Also, any late payments that your spouse makes can also wind up on your credit report. Yes, both of these actions are indeed legal.
- According to the law in most states, if your spouse incurs debt before you were married, they alone are responsible.
Likewise, your debt is solely yours. If you wind up on the owing end of marital divorce and debt, you may want to enlist the aid of a debt elimination counseling service to help you pay it off.
- The Federal Trade Commission (FTC) states that according to law, a creditor can not close a joint account on the basis of a change in marital status like divorce.
However, they can close the account if either spouse requests, but the creditor is not required to change any joint account to in individual account.
- If you have a mortgage or home equity loan jointly, the lender will probably require you to refinance to remove your spouse from it.
A Divorce And Debt Plan, You can start a debt elimination program to pay off your bills in a timely manner.
- If you do get a portion of a marital debt - or all of it - to pay back, you should contact the lender. By negotiating credit card debt yourself, they may be willing to negotiate a lower interest rate. Many companies will do this if they think they are in danger of losing your business.
- If you do have joint debt, experts advise that you should consider borrowing some money in your name only and pay off your portion. This way only you would be responsible for your individual debt.
- If you filed joint tax returns with your spouse, and you feel that there may be errors then you should have your attorney add a clause in your divorce papers that places the responsibility only on the person who is responsible for the errors.
This way only the person who made the errors will be held responsible for paying the penalties or taxes that are due.
A Divorce And Debt Plan
If you do find yourself in over your head, you can pick a debt elimination program to help you erase credit card debt and help you pay off all of your debt so that your credit report is in good shape.
No one wants to think of things going wrong in their marriage, but sometimes you need to plan ahead - even for the unthinkable, divorce and debt.
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