Divorce is never easy, especially when your spouse is carrying significant debt. Emotions can run high, but staying focused on your well-being is essential.
Whether you’re dealing with shared credit cards, loans or a mortgage, your spouse’s financial obligations could still affect you. The steps you take now can help shield you from unnecessary debt and long-term financial strain.
Taking the next steps
To protect yourself financially, start by gathering and organizing documentation for all debts, both joint and those your spouse holds individually. Make copies of account statements, loan agreements and credit reports so you have a clear picture of what’s legally tied to you.
Be cautious about assuming you’re not responsible for your spouse’s debt. Even if the judge gives you a divorce decree to specify who is responsible for which accounts opened during the marriage. That decree won’t bind the lenders or credit card companies. If your name is on a joint account, creditors can pursue you even after the divorce. When negotiating a divorce settlement, it can be helpful to push for joint debts to be refinanced, paid off or removed from your name entirely. Don’t rely solely on your ex’s promise to pay.
If you’re concerned your spouse may file for bankruptcy after the divorce, consider seeking legal guidance. Bankruptcy could shift joint debts back onto you, so it’s essential to include protective clauses in your divorce settlement.
Dealing with divorce and debt at the same time can easily feel overwhelming, but you don’t have to navigate it alone. Working with a professional who understands the legal and financial landscape can help you make informed decisions that protect your future.