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Options for dealing with credit card debt in divorce

Numerous couples in Maryland and elsewhere have shared credit card debt. With past and current economic struggles that many have or are presently facing, it is understandable. Unfortunately, this shared debt can create quite a problem for those who wish to go through the divorce process.

Most people do not think about what happens to debt in a divorce. The general concern comes with figuring out what to do with the marital home, bank accounts and any other valuable property. However, credit card and other debts cannot be ignored.

Debts, just like any positive assets, will be divided during the property division phase of divorce. Debts that are in the name of one party will likely be assigned to that individual. Shared debts, however, will likely be divided between spouses or paid off by using any means available.

Paying off shared debts before going through the divorce process is always advised. Unfortunately, this is not always a possibility, and that is okay. There are certain actions each party can take to deal with his or her share of the debt. For example, each party may be able to transfer his or her share of the debt to another account so that the joint account can be closed. Doing this will allow each spouse to move forward without being held responsible for the other's unpaid portion.

Dealing with credit card debt in divorce can be a challenge. However, there are arrangements that can be made so that it is appropriately managed. Those who are divorcing in Maryland can seek the assistance of legal counsel and financial advisors when negotiating settlements that include shared debts so that fair and balanced agreements can be reached.

Source: creditcards.com, "Dividing credit card debt in divorce", Amy E. Buttell, Accessed on June 23, 2016

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