Many divorce disputes happen over the division of assets. Spouses may fight over what belongs to whom, with both parties staking claims to objects or property of value. However, in some instances, the fight is not over who owns certain assets but does not. Debt is a classic example. A couple that is separating spouse does not want to be stuck with the debt of their ex-partner. Divorce is painful enough, and having to deal with paying off debt caused by your ex-partner’s poor decisions is unimaginable. Luckily, there are a few safe ways to avoid being stuck with your ex’s financial obligations.
Implementing Spending limits
Credit card debt is the most common type of debt and is often discussed during divorce proceedings. If you believe divorce is inevitable, there are a few ways to fix your partner’s spending habits before going your separate ways. First, you can remove them as an authorized user, preventing them from using the credit entirely. Unfortunately, it could send strong signals that a divorce is on the horizon. Another option is to place a spending limit on the card. They can use the card, but only up to a certain amount.
Avoid joint accounts
In many states, any joint account means that both parties are responsible for paying off the debt. If you are afraid of your spouse’s spending habits, you should keep your name off the vital paperwork.
An indemnity clause
Often, when spouses face a divorce, they begin to promise that they will get their act together and pay off the remaining debt. If they do not end up following through and may turn to you for compensation, the problem is that they may turn to you if they do not end up following through. A protection clause protects if, in the end, they do not fulfill their obligations. Debt, like other things, becomes a lot more complicated during a divorce. An experienced and knowledgeable divorce lawyer can help resolve the issues and develop a legal strategy that prioritizes their client’s unique objectives.
Contact Shaffer Family Law in Chandler
At Shaffer Family Law, we strive to serve your interests best by tenaciously working to settle your case before it goes to court. Divorce court is costly, and you have less control over the outcome of your case. We encourage our clients to help shape the agreements that will affect their future. Give our Chandler office a call today for a case evaluation.