There is no doubt that financial issues can lead to the breakdown of a marriage for many couples. Some studies have found that financial disagreements could even increase the chances of filling for divorce by 30 percent over couples who do not fight about money. We can be honest here; most financial arguments aren’t over having too much money.
Debt is a major factor in divorce, especially during or after a recession such as the one that our country recently experienced. Going from a two-income household to a single-income household generally doesn’t make paying off debt much easier, which is why a divorce attorney that also handles bankruptcy cases in Fort Worth can be such an effective representative.
How debt is handled and even prevented during a divorce is a vital part of the process. Liabilities, like the mortgage, need to be addressed and handled in the right way. For instance, if the decision is made to keep the home and thus the attached mortgage, it is important to remember that a divorce settlement does not change the terms of the loan. A spouse that will not stay in the home should consider refinancing and taking their name off of the obligation.
In some cases, it is the possibility of incurring further debts that may be at issue. Where a joint bank account exists, it is often prudent if one spouse withdraws half of the account and places it into a separate, individual account and provides proper notice to the other spouse. It may include putting a hold on any joint credit cards, freezing use or denying request cards to prevent a spouse from purchasing items that the other spouse won’t benefit from but will have to partially pay for.
It is these types of issues in which an experienced divorce attorney makes all the difference. Under some circumstances, debt may be an overwhelming issue for the couple before and even after divorce. The benefits and consequences of any debt relief options should be discussed with the attorney as well.
Source: Total Mortgage, “Going Through a Divorce? 3 Ways You Should Protect Yourself,” Courtney Watson, June 11, 2014