When the decision is made to get divorced in Texas, there may be concerns about how to handle the debts that have accrued during the marriage. During the divorce process, these debts will either need to be paid off or divided between the parties. These tips for navigating liabilities when ending a marriage may help..
Create a debt list
An important part of the process of tackling debt during divorce is to list all of the debts. Only then is it possible to figure out which debts belong to one party versus both parties, then divide the jointly held debt fairly. The liabilities in the list may range from mortgages to credit cards, student loans, auto loans and personal loans.
Establish a debt accrual deadline
After the debts are listed, an agreement can be made that no new joint debt will be created. This may help to establish their actual date of separation. Following this date, each spouse should ideally take responsibility for any new debt that he or she incurs. Closing any joint accounts can help to make this process easier.
Handling the debt
Finally, the spouses may decide to eliminate any joint debts by using their joint savings accounts to pay the obligations off. They could also sell jointly-owned assets and use the proceeds to get rid of their debts. Alternatively, they could each transfer 50% of their joint credit card balance amounts to individual cards, then cancel their joint cards. An experienced Texas family law attorney can help those facing these situations better navigate any potential issues related to debt or other elements of property division, increasing the likelihood of achieving the best possible outcome for one’s divorce.