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How should we handle debt during our divorce?

| Mar 10, 2019 | Property Division |

If you and your spouse in Connecticut have made the difficult decision to end your marriage, you will now face the challenge of figuring out how to split up your assets and move forward with two single lives. A lot of attention is given to property division settlements and, while that is understandable, it is important for you to remember that it is not just your assets that need to be addressed but also your debts.

You may find it tempting to just let your divorce decree outline all responsibilities regarding which one of you will be required to pay which debt. However, Money Management cautions against this approach as it leaves you vulnerable down the road. The big thing you need to know is that a creditor does not pay attention to your divorce, only to the names on a credit account. As long as both names remain on an account, both people will be responsible for the debt in the eyes of the creditor. 

Eliminating or reducing joint debt before filing for divorce is one recommended way of preventing a creditor from coming after you for payments your former spouse was supposed to have made. If this is not possible, the person who takes on responsibility for a debt should have that debt transferred to a new account in their name only.

This information is not intended to provide legal advice but is instead meant to give divorcing spouses in Connecticut an overview of how their joint debts will be viewed by creditors during and after their divorce.