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Addressing the topic of debt during divorce

| Apr 25, 2021 | Divorce |

During the end of a marriage, individuals in Georgia and elsewhere may find it necessary to address a variety of topics, each of which might have an impact on the outcome of the situation. While seeking insight on how best to prepare for the process of property division, one might also benefit from taking steps to better understand how marital debts will be handled. Understanding the role debt might play in divorce could prove vital to staving off unexpected outcomes and preparing to protect one’s future. 

Marital debt 

Debt comes in various forms and the role similar obligations will play in divorce may depend on several variables. Determining whether a debt falls under marital or separate property could prove integral to developing a strategy for negotiations. Examples of possible types of marital debt could include balances on joint credit card accounts or auto loans. 

Medical and mortgage debts are two more examples of obligations that may be subject to the process of property division. Even if one party agrees to take responsibility for certain debts during negotiations, should payments fall behind, the other party’s credit score may still be at risk and creditors could still choose to seek repayment from this person. The same repercussions could apply should the other party choose to file for bankruptcy after the divorce is finalized.  

Creating a strategy 

Individuals in Georgia who are facing a divorce and wish to create a strategy to protect their futures could benefit from knowing how best to approach the topic of marital debt. For guidance in covering every essential aspect of dissolving a marriage, a person could benefit from retaining the services of a family law attorney in the early stages of the process. Such advice could prove vital to helping a person understand his or her options and prepare to develop a strategy to seek the best outcome achievable during subsequent divorce proceedings. 

 

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