When most people think about divorce, they think about things like who gets the home and what the arrangements will be for the children. They may not realize that people who are ending the marriage also have to figure out how to handle their debts.
There are many ways that you can split up the assets and debts. In some cases, the debts are used to balance out the division of the assets. This doesn’t always work because some people are worried about how the arrangement will impact their credit score.
Do creditors have to follow the divorce decree?
Creditors aren’t bound by the terms of your divorce. A divorce is a civil matter that they didn’t participate in. They can hold you accountable for any debts that were from the marriage if you’re a co-owner of the debt. They can report late payments on your credit report even if the debt was assigned to your ex in the divorce.
If you’re concerned that your ex might not pay the debts they’re assigned, it might be best to try to sell off assets from the marital property to pay those off. This could help you from being impacted by their financial irresponsibility after the divorce.
Anyone who’s going through a divorce needs to consider the impacts that come with every property division settlement option. If you’re concerned about your credit score, you should think about this during the process. It isn’t always easy to come up with a viable solution to this issue, but having experienced legal guidance be beneficial.