One of the most difficult aspects of ending a marriage is making choices and securing terms that will allow an individual to have a strong financial future. Most adults in California facing divorce likely have concerns about how this process will affect their income and savings, but most would be wise to give careful thought about the debt they may carry with them. A burden of debt can make it difficult to financially recover from a divorce.
Spouses may have very different ideas regarding how they will divide marital debt. Like marital assets, debt accumulated over the course of the marriage is subject to division in the event of a divorce. This can include personal loans, credit card balances and mortgages. If during the marriage one party signs for a loan and the other doesn’t, the one who signed is legally responsible for any remaining balance.
In some cases, it is prudent to negotiate how the two parties will share the debt. The individual circumstances and financial prospects of a spouse will determine how to pursue reasonable and sustainable terms that will make sense long-term. Divorce impacts every aspect of a individual’s financial life, and its implications can last for years to come.
A heavy burden of debt can make it difficult to move forward after a divorce is final. This is why a California spouse will find it beneficial to work with an experienced attorney who can help fight for a fair financial settlement. Agreeing to any terms without careful consideration of long-term consequences may result in unmanageable debt payments.