Although a lot of time is spent in divorce thinking about how to divide marital property in a way that’s fair and that sets you up for post-divorce success, you can’t afford to overlook the importance of properly addressing marital debt. Like marital property, these liabilities should be divided in a fair fashion, which doesn’t necessarily mean that the debt has to be divided evenly. But how can you address debt division in a way that’s beneficial to you.
Tips for addressing marital debt division
If you handle debt division during your divorce improperly, you’re going to be at a financial disadvantage moving into the next chapter of your life, and it might become impossible to meet your post-divorce goals. Therefore, as you enter settlement negotiations or litigation, be prepared to do the following:
- Identify debts that are separately owned by your spouse and should be retained by them in their individual capacity, such as debt attached to credit cards in their own name and an auto loan that they took out on their own for a vehicle that only they drive.
- Create a post-divorce budget so that you know what sort of debt burden you can realistically handle once your marriage dissolution is finalized.
- Consider your spouse’s post-divorce financial positioning to see if they’re better suited to take on more debt.
- Think about whether debt you accumulated was for the benefit of the marriage, that way you can try to force your spouse to pay their fair share.
- Shed the marital estate of debt before wrapping up your divorce, such as by selling off assets with large debt obligations attached to them and splitting any profits acquired with your spouse.
Build yourself a strong financial foundation for life post-divorce
The way in which you handle your divorce will dictate what your post-divorce life looks like for a long time to come. With so much at stake, you owe it to yourself to be prepared to advocate for the fair and favorable outcome you deserve. So, start developing your divorce legal strategy now to protect your future.