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What to know about dividing debt in divorce

On Behalf of | Nov 17, 2020 | Divorce |

Couples going through a divorce face a lot of uncertainty, especially when it comes to money. Not only is going through a divorce expensive, but divorcing couples often face financial challenges amidst a divorce. One of those is when couples divide debts in divorce.

Just as assets are divided in divorce, so are debts. If a couple has joint credit card accounts, they will split the debt incurred in an equitable manner in both Massachusetts and New Hampshire. That means even if your spouse is a bit of a shopaholic and you didn’t incur the debt yourself, you likely will be responsible for paying part of that credit card bill.

If you are concerned about dividing debts in divorce, you can take the following steps to protect your finances:

  1. Open a credit card account in your name only to establish credit on your own.
  2. Close down any joint credit card accounts.
  3. Put a spending limit on your credit card accounts.
  4. Work with your spouse to divide your debts and assets outside of court.
  5. Understand what your financial obligations will be after divorce, including child support or spousal support, and build a post-divorce budget that accounts for those.

Most people have to rebuild their finances a bit after a divorce. By taking these steps, you can limit the financial impact of your divorce. If you seek divorce mediation, you can lower your divorce costs further, as mediation often saves time and money. You also may want to consider downsizing and selling the family home to have a more stable financial situation. In the end, you want to position yourself to recover quickly from the financial challenges you’ll face in divorce.