The following guest post is from Marc Brown:
Divorce and debt problems often go hand in hand and have adverse impacts on each other especially in terms of finance and possessions. Sometimes, fighting on financial issues drain the joy out of a marital life and compel the couple to split up. Under Arizona law, all the assets and the debts incurred during a marital life are regarded as community property and therefore after divorce needs to be divided equally between husband and wife. Division of debt is not an easy task because your better or worse half might have accumulated outstanding debt, but you also remain liable to pay it off. Both Debt division as well as asset division is contentious as both you and your spouse fight over each and every tiny issue in order to evade any sort of loss. Only a knowledgeable attorney is capable of helping you to divide your marital debt equitably.
Documents Required to Aid in Debt Division
Courts demand substantial proofs and documentation to determine marital assets and debts. It is not always possible for couples to provide all exact and accurate information to court and therefore verification of facts are required. Credit bureaus are able to shed light on this matter and can present exact figures and estimation of debt. Before planning a divorce you need to keep a record of following items like tax returns, mortgage papers, investment portfolios, bank account records, credit card statements, business records, titles or deeds of ownership. In case there is no financial documentation of the above mentioned items, you can request assistance from forensic accountants and certified public accountants. They can investigate your finances and get an exact account of debts and assets. It is essential to depict a clear picture of the community properties, separate properties and debts so that the court can make a perfect ruling on the property division.
Agreements of Debt Division
If you are in the planning stage of divorce you can better start paying off your debts, so you don’t have to handle them any more in the divorce settlement. However if you have overwhelming debts during divorce an Arizona family lawyer can help you to come to terms on some debt division agreements. In the agreement you need to follow the contracts given below:
• You need to give consent that you take responsibility for the debts in exchange for receiving more assets from the marital property division. For example suppose, you get the possession of the house, the cars and the lake house and agree to take care of all the credit card bills.
• You can also agree to let your spouse take responsibility for some of the debts and in turn he or she can receive more assets from the division of property. For example you can allow your spouse to take the boat, the house with the mortgage payment and all of the student loan debt as well.
• You can agree to share equal responsibility for the debts as well. Here both you and your partner will be legally responsible and if your ex-spouse does not pay off the debt, you will be left with the entire debt burden. You can appeal to court, but creditors will still hold you legally responsible and if you do not pay back the debt it will adversely affect your credit history in future.
To make the best of a bad bargain and settle your marital debts you better keep all the above mentioned points in mind. There are some legal consequences that can affect you for a long time even after your divorce gets finalized. Settle your debt in dispute with the help of a proficient attorney. Make sure that your legal agreements put you in a fair position and you do not start your new life after divorce with a dent in your wallet.
About the Author: Marc Brown is a financial writer. He has been writing on financial topics over the years with special focus on the US economy. Marc also takes interest in debt related issues and contributes articles on debt settlement to acclaimed personal finance blogs.
