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Protecting yourself when dividing debt in divorce

Residents in New Mexico who are getting divorced generally have to endure the process of splitting up their marital estate. Most people commonly think about how to divide assets but also involved in this process is the division of debt. Figuring out how to assign a couple's debt can often be a complicated thing.

As explained by CreditCards.com, one thing people should consider is that they do not want to amass any more debt that joins them to their spouse once they have initiated a separation or divorce. One way to accomplish this is to cancel all joint credit accounts. Freezing accounts may also be another way of preventing debt from mounting.

When it has been decided that one person will be responsible for a certain debt, such as a credit card balance, Fox Business recommends that the spouse who will own that debt should be required to transfer it to a new card in their name only. This will help ensure that the debt does not remain in both people's names. This is important because even if a divorce decree stipulates that one person is supposed to pay a particular debt if both people's names remain on the account, a creditor may still legally be able to pursue repayment from both spouses.

Divorcing spouses should also ensure that they get a full list of all assets and debts together before beginning their divorce settlement negotiations. This will give them the full picture of their financial responsibilities so they can make wise decisions.

 

 

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