On behalf of Ronald H. Kauffman, P.A. posted in Marital Debt on Thursday, July 12, 2012.
A lot could be said about divorce, but “easy” is not one of them. First there is the emotional trauma of ending a marriage, but that’s only the start of it. You also have to work out timesharing with the children, the property division of the marital assets and marital debts, paying child support (and possibly supporting your soon-to-be ex) paying for the process, and of course, taxes.
This is a short post about the hidden minefield of divorce: the dreaded marital debt.
Marital debt is a danger you may not be aware of until you’ve stepped into it. But, when you hire a lawyer and accountant to help, you ensure that you not only take on the debt you are legally obligated to pay, but learn which debts are the most advantageous to take – if given a choice. You also learn how your debt service impacts the property division, and the support you pay or receive.
If, as they say, “knowledge is power”, then in addition to your lawyer you should take the time to speak to an account or financial advisor to prepare for your divorce. This knowledge will help you take charge (pun intended) of your debt issues. You will then be prepared to work out a settlement, or learn what to request in court, with confidence. At my office we work with several accountants and financial advisors to help guide you through this minefield.