There are so many issues to decide on when you and your partner are filing for a divorce. It’s hard to know what to consider first. But there is help available when you choose the collaborative divorce process.
The collaborative process helps couples to stay away from litigated court divorces. Not only does it save time and money, but it also holistically works with the entire family while working toward a peaceful resolution.
Often when our team begins to work with divorcing clients, the couple will ask many different questions, but the one we get asked the most often is about how debt is divided in the marital dissolution agreement. Here are a few thoughts:
- From the time you get married until the date you’re separated any acquired debt is considered community property
- During the divorce process, the debts still need to be paid promptly
- If one spouse has decided to keep the marital home, they will need to refinance and assume the entire mortgage loan
- Pay off any joint debt through your shared marital assets when possible
- Open an individual bank account, and when advised, close joint asset accounts
During the collaborative divorce, a couple can receive recommendations from a financial neutral. This financial expert will gather all of the information about your financial landscape from both of you, review it and then present a detailed report of their findings and discuss how your debt can be divided between you.
Having a financial neutral makes collaborative divorce an attractive option when unraveling complex financial landscapes.
A Better DivorceTM is an interdisciplinary group of professionals committed to non-court, non-confrontational solutions for family law matters.
We provide you with access to qualified professionals who can help you make informed decisions about how your debt will be divided with your spouse in your divorce agreement. Contact us today!
Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.