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Factors to address regarding debts when facing a divorce

On Behalf of | Jan 12, 2024 | Divorce

There may be various scenarios in which sources of conflict in a relationship could create an irreparable rift in your marriage. However, even if parting ways is the best path, divorce can still be a stressful process, and you might have questions about what factors to consider as you prepare to navigate the subsequent process. 

With a variety of topics to consider and difficult decisions to make, it might seem easy to feel that you could overlook some vital detail along the way. One such detail that may catch many by surprise could pertain to the role marital debts can play in a Colorado divorce, and knowing what to expect in this regard could be essential. 

Addressing the topic of debt 

Marital debts could be subject to the process of property division and may have a significant impact on the outcome of your divorce. A few factors to consider regarding this topic could include: 

  • The types: Knowing what types of debt may be subject to division during a divorce may be vital. This could include anything from balances on joint credit card accounts to joint loans on automobiles. 
  • The topic of liability: Knowing how liability works for joint debts that the court divides in divorce can also be beneficial. Even if one spouse agrees to take responsibility for a joint debt, that might not mean that creditors cannot hold you liable if payments fall behind. 
  • The options: It could also be essential to consider every available option to help pay down or pay off any joint debts, as this could help stave off a variety of potential financial risks. 
  • Your financial future: Since the presence of joint debts could affect your credit score, keeping watch over credit reports could be vital to identifying and responding to financial concerns. 

If you have a remaining balance on the mortgage of your family home, seeking advice in addressing all your available options could also be essential to taking steps to protect your financial future. 

Creating a strategy 

Including the topic of debts in your strategy could prove integral to helping you prepare to safeguard your future at the end of your marriage. However, this may only be one of many vital factors to address when approaching a similar change in life circumstances. When facing a divorce, it could be beneficial to consider seeking advice on what to expect from the process and assistance in creating a strategy for legal proceedings that best focus on what is most important to your future.