Managing Debts During The Divorce Process

Hi,
When a divorce is filed, it is easy for the parties involved to adopt the belief that their debts can wait until the divorce is finalized. Putting this belief into practice can severely damage the financial future of both parties. Any financial obligations that either party takes care of during the divorce, that could in turn be ordered the other's responsibility, will be adjusted accordingly by a judge during the final divorce decree. Showing financial responsibility during a divorce may influence numerous decisions made by the court. Now that we have gathered all financial information available to us on debts for which we are liable, we need to notify our creditors of the situation. Different states have different laws in respect to who is responsible for marital debts in the event of a divorce. When calling creditors, it is important to establish a paper trail that:
1) The name of the person paying the debt after the divorce is filed is documented.
2)Credit cards such Visa, MasterCard, Discover or American Express etc., need to be notified that we wish to have our name removed, and that we are not responsible for any charges incurred after the date of our phone call to them. In most cases they will request that we follow up the phone call with a letter. At the same time, we can inquire about getting a card issued to us in our own name.
3)If we are the homemaker in the marriage and do not have an income to pay on any debts for which we are responsible, it is important to immediately contact our creditors. When contacting creditors, we need to explain the situation and let them know that we have no means of paying the debts at this time. We will keep them advised of our future financial situation once the divorce is finalized and our financial status is clarified.
As always, it is imperative to get the first and last names of any creditor with whom we speak. If we find ourselves blindsided, and left without any means to manage the situation, we need to ask a trusted friend to help us locate any available resources in our area. Tomorrow I'll talk about financial life after a divorce.
Until then,
Alan