Ending a marriage often feels more like ending a business than a relationship. There are assets to divide, and debts as well. If you were ending a business relationship, you would probably want certain assurances that you will not end up liable for your partner’s debts. The same could be said in a Louisiana divorce, which is why you may want to take full advantage of divorce mediation in order to protect your credit and your financial future.
It may not be terribly difficult to determine which of you will take on what debts. The problem is in making sure that neither party has to look over his or her shoulder for a creditor to come knocking and demanding payment on a debt that the other party pledged to pay in the divorce settlement. This may take some time and careful drafting.
For instance, if you have a joint credit card account, the creditor may not be willing to remove you from it. Lenders and other creditors are not required to honor your divorce settlement. If your former spouse fails to pay the bill, you could end up financially liable for it. That does not necessarily mean that you have no legal repercussions, however. If you negotiate sufficient consequences for non-payment of debts, you have a binding contract with which to take the other party to court.
If you are unable to remove your name from a joint debt, your divorce settlement may be all you have to fall back on to seek payment from your ex-spouse. A Louisiana divorce mediation attorney who deals with this issue regularly may be able to help you and your spouse devise a plan that will help ensure that each of you pays the debts you agree to pay. No one can predict the future, so ensuring that your settlement agreement covers as many contingencies as possible may keep you from suffering unnecessary hardships related to your divorce.
Source: thebalance.com, “Debt & Divorce“, Justin Pritchard, Accessed on Sept. 10, 2017