What Are The Best Ways To Manage Post-Divorce Debt?
The state of Florida practices equitable distribution. For this reason, when a divorce occurs, it is not uncommon for both spouses to be given an equitable percentage of their marital assets, as well as the debts that they took on.
By being aware of the most common types of debt, how to prepare for the division of this debt, and how to manage this debt, it’s much easier to ensure that post-divorce life is easy and pleasant.
What Are The Most Common Types Of Debt You Must Divide?
Many marriages contain, and involve, debt. Some of the most common types of debt that must be divided, throughout the divorce process, are as follows:
- Student Loan Debt
- Credit Card Debt
- Medical Debt
- Mortgage Debt
- Personal Loans
Each one of the debt types outlined above will, if it was acquired throughout the marriage, be divided in a manner that is aligned with Florida’s equitable distribution laws.
Right after a divorce is finalized, both spouses may have new debts that must be paid off. To go along with this new debt, any debts that were acquired before the marriage, or any debts that exist as personal debts unencumbered by shared finances, will still need to be paid off.
How Can You Prepare For The Division Of Debt?
To prepare for the division of debt, it is of the utmost importance that both spouses organize their finances. Both spouses should do this together, with their shared finances. Right after they do so, both spouses should then organize their own, individual, finances.
Some of the best ways in which two spouses can organize their finances, and prepare for the division of debt, are as follows:
- Gather a copy of each spouse’s current credit report.
- Speak together and clarify which spouse will be responsible for which debts.
- Conduct a complete financial assessment, going through every single debt.
- Refinance property so that it is in the name of the person who will be acquiring it after the divorce process has been finalized.
- Refinance other marital assets, so that they are in the name of the person who will be acquiring it after the divorce process has been finalized.
- Gather a copy of a prenuptial agreement or any other, related, marital agreement documents.
Every single one of the actions above serves as an effective way of organizing one’s finances. By taking these actions, it’s much easier to prepare for the division of debt and, in turn, to manage post-divorce debt.
What Are The Best Ways To Manage Post-Divorce Debt?
To manage post-divorce debt, both spouses should take stock of their individual financial situation. Right after they’ve done so, they can then take the following actions:
- Sell property and/or vehicles that are no longer used, to clear the debt that is currently owed.
- Set up an automatic payment system, so that debt repayment bills are automatically taken care of.
- Set reminders for when specific debt payments are due, ensuring that they do not grow with interest.
- Come up with a debt repayment methodology that is aligned with the current financial situation and, in turn, what is realistic.
- Pay off the balances that can be paid off right away, so that they are no longer a problem.
Every single one of these actions serves as an effective way of managing, and taking care of, post-divorce debt.
Speak With A Tampa Property Division Lawyer
Dealing with debt after divorce can be tricky. But, by speaking with a Tampa property division lawyer today, it’s easier to acquire an effective debt division outcome.
Sources:
law.cornell.edu/wex/debt
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
