One of the most contentious aspects of divorce involves the splitting of assets between oneself and one’s soon-to-be ex. However, another major source of financial conflict during a divorce proceeding may be the division of debt in the marriage. A couple of tips may help individuals in California fight for their best interests when addressing such debt during a divorce proceeding.
In California, which is a community property state, most debts that either spouse incurred while married end up being owed by both individuals. This is true even if just one of the individuals signed the necessary paperwork for particular debts. As a result, people can walk away from a marriage being responsible for debt racked up during the marriage for the purpose of covering family necessities or maintaining assets that were jointly owned.
The problem that some individuals face following divorce is when collectors attempt to collect from them for their former spouses’ debts. In this situation, the person being pursued has the right to ask the collector to put the information in writing. In addition, individuals can rightfully ask such a collector to verify the particular debts being pursued if they do not believe they owe the debts. Also, they do not have to answer questions about any debts their exes owe if collectors ask them and they don’t want to answer.
A person’s financial future is at stake when he or she is going through a divorce. If the individual can amicably tackle issues such as debt and asset division with a soon-to-be ex through divorce negotiation or mediation, this increases his or her chances of reaching as satisfactory of a settlement as possible. It is within the rights of both individuals to seek a resolution that is personally favorable while taking into consideration the other spouse’s wishes.
Source: Forbes, “Getting Divorced? Do Not Ignore Your Credit Score (and How to Rebuild it if You Did)“, Emma Johnson, April 8, 2015