For many people in Illinois, the mention of a divorce may conjure up challenging negotiations between spouses about how they will split up their marital assets. While this can definitely be a major part of a divorce, it is important for people to remember that they must also figure out how to split up their debts when they get divorced.
As explained by Fox Business, proactivity can go a long way toward protecting a person down the road. Relying solely on the terms of a divorce decree to assign responsibility for a debt is a highly risky move. This is because any debt that was initially joint remains so in the eyes of a creditor despite what a divorce settlement may say. For this reason, it is wise for couples to find ways to pay off debts before they complete their divorce.
It can also be helpful to either cancel credit accounts or place freezes on them as soon as the decision to divorce is made. This will prevent the addition of even more debt to the picture. If some debt is to be split, couples may want to consider ensuring that debt is transferred to a new account in the responsible party’s name only so as to remove the other person from the liability.
If a couple’s debt problems are serious enough, they may want to evaluate bankruptcy as an option. However, My Horizon Today recommends couples carefully review their situations to determine what type of bankruptcy is right for them and also be honest about their ability to work cooperatively together to complete a bankruptcy while still married.