Divorce 101: The process of debt division

While most couples who hear about divorce know the basics of it, such as property division agreements and child custody battles, not too many people think about what happens to the debt a couple owes to lenders.

Houston-based lawyer Shane Kersh explains that the division of existing debt during and after a divorce is just as important as any agreement the couple may come to during the process. Atty. Kersh also mentions that what happens to the debt during and after divorce will most certainly have an impact on the couple’s net worth as individuals later.

While different states have different laws on divorce, there are some parts of divorce laws that apply everywhere. For example, in debt division, while courts try to divide the existing debt as fairly as they can, they may award more assets to a spouse who volunteers or is assigned to a larger chunk of the debt.

Atty. Shane Kersh recommends that spouses going through a divorce who are based outside Texas should review their state laws. Some states (Texas included) have what is called community property law. This means that everything in a marriage, from assets to debts are owned equally.

It may also be best for couples who are about to undergo divorce to review their finances and see if they can pay off their debts before the divorce proceedings to lessen the stress and tension, and simplify the divorce, Atty. Kersh adds.

Houston-based family law attorney Shane Kersh is dedicated to helping people who are going through difficult times, especially in relation to issues arising from divorce, child support, mediation, CPS defense, order modification, and marital property. For similar posts, visit this blog.