Divorce is not just the end of an emotional relationship. It is also a financial separation that can leave you facing significant challenges, especially when it comes to debt. It is crucial to navigate this aspect of divorce wisely to avoid unnecessary financial burdens.
The first thing you need to do is understand your debts. Make a list of all debts, including credit card balances, loans and mortgages, to determine which ones are joint and which are individuals. This will help you understand the full extent of your financial obligations.
Learn more about how the debt division process works
California is a community property state, which means that couples equally own all assets and liabilities acquired during the marriage. As such, you may end up with half of all the marital debt.
Avoid taking on new debt during the divorce process if possible. It might complicate matters down the road. Additionally, you do not have to shoulder a debt incurred by your spouse in bad faith. If you believe they have incurred debt maliciously or for their sole benefit, you may be able to seek relief from that debt when dividing the marital estate.
Protect your credit score
It is worth noting that you may still be legally liable for joint debts as creditors are not party to divorce proceedings. If your ex defaults on a joint debt assigned to them by the divorce court, it will likely reflect in your credit report. To avoid such instances, consider options like transferring the debt to your ex or removing your name.
Moving on with your life after divorce can be challenging when burdened with excess debts from your former marriage. It can only add to the stress and emotional toll. Reaching out for legal guidance can protect your interests and increase the odds of a fair settlement during this crucial moment in your life.