Marital debts may play a significant role in divorce

Couples in Montana and elsewhere may accumulate a significant portion of assets and debts over the course of a marriage. Upon making the decision to part ways, many may feel that obtaining information on the true value of assets could be key to preparing for subsequent negotiations. However, marital debts may also play a significant role in the outcome of a divorce and these financial obligations can come in a variety of forms.

One of the most common forms of debt individuals carry pertains to carrying a revolving balance on a credit card. Should a couple choose to open a joint credit card account, any remaining balance on this account will be deemed marital property during divorce proceedings. Auto loans are another common source of debt among married couples, and if both names are listed on the loan, the credit scores of each party may suffer should payments on the loan fall behind.

While mortgage loans can also have an impact on negotiations, one may have several available options to approach a similar obligation, such as negotiating a buyout agreement or selling the home and splitting the proceeds. Studies also indicate that medical debts could play a role in the outcome of a divorce. No matter the type of debt involved, creditors may still seek to hold both parties financially accountable should accounts fall past due, regardless of what is stated within the terms of the divorce decree.

Gaining awareness of all marital debts could prove essential to preparing to protect one’s financial future during negotiations. For guidance on what to expect from the process and every crucial aspect to cover, individuals who are facing a divorce could benefit from speaking with an attorney early in the process. An attorney can work with a client in Montana in forming a strategy to pursue the most favorable outcome achievable concerning his or her future during subsequent legal proceedings.