How To Divide The Debts In A Divorce
Divorce is not a pleasant experience. In this article, we will find out how to divide the debts so that the situation is resolved as soon as possible.
Divorce is a difficult experience which in the vast majority of cases comes with its share of pain. To such a delicate situation, one must add the formalities consisting in dividing the debts which one could contract.
As soon as there are debts, disagreements, debates and disputes can arise and make the divorce proceedings longer than expected. It is better to avoid this. We will see in this article how to divide the debts in a fair way for the two people who were united by marriage.
First steps to dividing debts
Before dividing the debts and showing them to the lawyer during the divorce proceedings, it is necessary to draw up a list. To do this, it is very important to maintain open communication with the person we were in a relationship with.
When establishing this list of all debts, consider when they were incurred, the interest on each, the amount of their monthly payments and their cancellation date.
So after that, we will make sure that we have listed all the data correctly and present the list of debts to our lawyer. He will give us a series of tips that we will detail in this article.
Tips for dividing debts
When we present the debts to the lawyer, he will advise us to negotiate amicably with our ex-spouse. This will be the best option, because the procedure will be even easier. But what if one of the couple doesn’t want to collaborate? In this case, the most likely is that the debts are split at 50%, whether this is fair or not.
The higher the income, the more debt you have to pay
If in order to divide the debts, the members of the couple decided to do it amicably, the lawyer will advise them in the following way:
As the article “Divorce: who should pay the joint debts?” Points out, the member of the couple who has a better salary will pay more debts. For example, if one of the members of the couple earned 2000 euros per month and the other 900 euros, the first will pay a greater percentage of the debt.
Refinancing possibilities
Another important tip to take into account: analyze whether there are possibilities to refinance certain debts. This is possible when a property is in the name of both members of the couple.
When this is the case, the person who stays in the house is often the one who refinances it, a concept discussed in the article “Redemption of credit in the event of divorce”. Thus, the house remains only in his name, and the other person is exempt from any liability.
Individual debts
When you marry another person, everything is split at 50%. However, there is the possibility of differentiating between individual debts and common debts. But that will depend on the negotiation that the members of the couple carry out.
For example, if one member of the couple has their own business and has incurred a debt, while the other member is an employee, the entrepreneur will have to pay the debt. However, as we have already mentioned, it will all depend on how the couple negotiates and whether they come to an agreement that is beneficial for both of them.
Debts During Divorce
Having debt is a difficult situation for a couple. If we add a divorce, the circumstances can become rather delicate. Also, despite the pain of this experience, one must try to negotiate with clear and respectful communication.
It will save us time and money. Because when several problems arise, it can slow down the divorce process and increase legal fees.
Also, do not hesitate to call on a good lawyer who will advise us to share the debts equitably.
