Debt seems to be something that most people in Missouri face in some way. It is all but impossible to buy a car or certainly a house without amassing some serious debt. In addition, credit cards have come to be a commonly used form of payment across the country in today’s society. While all of this is normal, it can pose unique challenges for people when they face an impending divorce.
A lot of attention is given to how a couple will split up their assets when they get divorced but the reality of the situation is that debts must also be addressed. As Money Management International explains, people should not assume that the terms of a divorce settlement will protect them in all situations.
A divorce decree might well stipulate that one spouse is responsible to pay a specific debt that was in both spouse’s names. However, if that person fails to live up to their agreement per the decree, the creditor may seek payment from the other spouse. In addition, if the spouse named responsible for the payments in the divorce agreement is late on any payment or simply does not make a payment, notifications to the credit bureaus will likely impact both spouses’ credit reports.
SoFi recommends that spouses take proactive steps to eliminate all joint debt before completing their divorce. This may require one person to transfer debt into a new account in their name only if there is no way to completely pay the debt in full.