Spouses preparing for divorce have to address financial matters. Usually, economic discussions surrounding divorce focus primarily on the distribution of the spouses’ assets.
However, many married couples also share debts. They have financial obligations they took on during the marriage, which they both have a responsibility to pay. Some people immediately try to avoid direct responsibility for marital debts and push their spouses to pay as much as possible. They may have failed to consider a future issue that requires acknowledgment during the property division process.
Defaults could lead to collection efforts
Once spouses have agreed to a property division settlement or a judge has imposed a final property division order, people can begin rebuilding their lives. Unfortunately, not all divorced individuals enjoy financial stability after divorce.
Sometimes, the spouse responsible for marital debts struggles to balance their budget. They might default on financial obligations from during the marriage. Other times, they might file for bankruptcy. In either scenario, the other spouse might be at risk of collection efforts.
Even when there is a family court order designating one spouse as responsible for mutual debts, creditors can still demand payment from the other spouse and even take them to court if necessary. The possibility of a spouse failing to pay what they owe could be an incentive to accept responsibility for more marital debts. It could also inspire people to liquidate shared assets to pay the debts in full and move forward with a clean slate.
Spouses who look at the big picture during property division negotiations can push for terms that set them up for the fastest financial recovery possible after divorce. People who are pragmatic about dividing their property and debts can sever their economic connections to their spouses and begin rebuilding their lives independently.