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Remember that debts are divided in divorce

by | Sep 6, 2019 | Divorce

The financial changes that come with divorce are often challenging to handle. As part of the property division process, you and your ex will divide assets, but you will also have to split up the debts. This means that you will have to budget for your own set of household bills while also taking on some other payments. You need to plan carefully so you can ensure everything is going to get paid.

Before the property division happens, you can start setting up a budget. Be realistic about your expenses so that you have an accurate account of what is going out and what’s coming in. Once you know what you have each month, you will be able to relay what you can pay on joint debts.

Creditors don’t have to abide by the property division order since it is a civil order that they weren’t part of. This means that they can still hold you liable if your ex doesn’t pay what they are supposed to. This can harm your credit, so you should try shore up your credit history by making your own payments on time.

Once you know what debts you will have to pay, you can set up a plan for doing this. Try to pay off the debts with the highest interest first so that you aren’t paying a bunch of extra money. Until these are paid off, you might have to cut back on what’s going out. This can be challenging for some, but the sacrifices you make now might help to provide you with the financial stability you need.

As you are going through the assets and debts, keep your budget in mind. Some assets might have upkeep costs and other expenses, so only fight to keep those if you know you will be able to cover those without straining the budget.