Florida residents who are facing a marital separation or divorce know that they will end up having to figure out how to split their assets. However, it is important for them to remember that their debts will also need to be dealt with during the process. Spouses should learn what is involved with debt division during a divorce in order to protect themselves down the road.
An important thing for people to learn, according to Money Management International, is that a divorce decree alone may not be enough to keep a creditor from coming after them for a debt. In the eyes of a creditor, anyone named on an account is responsible for the debt associated with it. When it comes to homes, divorcing spouses should be very careful about letting their partner keep a home without requiring them to get a new mortgage in their name only.
When it comes to credit cards, CreditCards.com recommends that divorcing or separating spouses cancel all joint accounts as soon as possible to avoid further debt from being amassed once they make the decision to end their relationship. If an account cannot be closed immediately, it should at least be frozen.
Once a couple makes an agreement about which person will be responsible for which debt, it should ideally be paid off promptly. If this cannot happen, the responsible party should transfer the balance to a new account in their name only as this is the only way to clear the other party of liability.
