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Do not forget about addressing debt during divorce

| May 20, 2019 | Divorce |

Money is on the minds of most people quite often. There are certain times in a person’s life when financial concerns may rush to the forefront, and divorce is an event that could trigger such concerns. If Texas residents do not understand their financial affairs or how to protect themselves while ending their marriages, they could land in a difficult predicament.

First, if a couple has joint credit accounts, it is a wise step to close those accounts as soon as possible. Leaving these accounts open could result in one particularly disgruntled spouse racking up a substantial balance for which both parties could wind up liable. If closing the account right away is not an option for whatever reason, an individual may consider having the account frozen to prevent vengeful activity.

While closing or freezing accounts could help prevent additional joint debt, it is important to know what debt already exists. When it comes to dividing debt in a divorce, it does not necessarily matter which party accumulated the outstanding balances. Marital debt is subject to division, and by having information on current debts, individuals may be better able to prepare for addressing that particular factor when the time comes.

Texas residents going through the marriage dissolution process may want to explore their options for handling outstanding balances during their legal proceedings. In some cases, the division of debt could become an important factor when negotiating for a particular outcome, such as taking on more debt in order to keep another asset. Debt can be difficult to address even under the best of circumstances, and divorce can often make it more difficult.