Debts built up throughout the marriage will not simply disappear during a divorce. Now that you will be handling finances solo, it’s natural to worry about how these debts will be settled and who will bear the responsibility.
Gaining insight into the likely scenarios and available solutions might help you plan effectively and manage your debts before they escalate.
Understanding your financial responsibilities
In Vermont, the law seeks to divide marital debts fairly, much like assets. Throughout your marriage, you and your spouse likely accrued debts together, such as credit card bills, medical bills and loans tied to your home or bank accounts.
Creditors will consider both of you responsible for jointly held debts, regardless of who made the purchases or predominantly used the funds. Obtaining a divorce decree does not absolve you from joint debts. If your spouse fails to make payments, creditors may legally seek repayment from you.
Consider agreeing on a strategy with your spouse before your divorce is finalized. Such cooperation may help prevent the possibility of repossession, legal action from creditors and other complications if either of you defaults on payments.
For instance, if your spouse receives a temporary order to make mortgage payments and fails to do so, you could face the consequences. The mortgage holder could initiate foreclosure proceedings and put your property at risk. Additionally, if your spouse declares bankruptcy, creditors may turn to you to satisfy debts your spouse was responsible for paying.
Taking control of your situation
Facing financial challenges amid divorce is no small feat, but you do not have to take it on alone. An experienced family law attorney can assess your unique situation, help you understand your responsibilities and develop a tailored strategy that prioritizes your financial security and peace of mind.
As you transition to this new chapter of your life, having the right support can help alleviate any obstacles you may encounter.
