Will My Ex’s Debt Affect Me?

When going through a divorce, most people’s mindset is to get all they can out of the situation. As assets are split equitably, most people forget about the other side of the financial situation: debt. However, just like assets, debt accumulated during the marriage is split equitably as well. The divorce decree will assign responsibility to one partner or the other, so does this mean the other is off the hook?

Unfortunately, no. The divorce decree is an agreement between you and your former spouse—not between you and the creditor. Therefore, if your spouse dies, goes missing, or is otherwise unable to pay, the creditor is legally able to hold you accountable for the amount that is owed. This means that, even decades after your divorce, you may suddenly find yourself facing a creditor for a debt that you thought was no longer your problem.

There are a few ways to lower the possibility of this happening, though no way is fool proof. Determining a payment plan for all debt during the divorce proceedings is one way to attempt to eliminate your responsibility later on. You also have the option to ask the creditor for a “novation,” which could take away your liability. This, however, is rarely granted without certain financial situations.

If you have debt and are preparing for a divorce, make sure you have the best legal help possible to avoid situations like this down the line. Contact the divorce lawyers at New Beginnings Family Law today for a consultation.