Once you and your spouse decide to file for divorce, you have many choices that need to be made. Some couples delay filing for divorce for various reasons, such as when their children are a little older or they have saved the money to pay for an attorney. Others choose to delay filing until they have reduced the amount of marital debt they have incurred so neither party will have a difficult time making monthly payments.
Choosing to reduce your debt is a good way to make your divorce a little easier. If this is something you want to do, make sure your spouse is agreeable to this goal, too. It won’t help reduce debt if you are making large payments on credit cards each month only to find out your spouse is still charging whatever he/she wants. This will just cause more tension. Unless your spouse is on board with the debt reduction plan, you will be beating your head against the wall.
One way you can reduce the debt you owe is to sell large ticket items, such as cars, recreational vehicles or your family home. Not only will you not have those payments to make each month, you may have a little cash to use on other loans, such as credit cards. If you have not yet began the process of divorce, and your spouse agrees, it is fine to sell your home or other personal belongings.
Once you have filed the necessary paperwork to begin your divorce, selling your home becomes a little trickier. It may still be possible, but you may have to wait until your divorce is final and includes directions on how any profits may be split between the two of you.
Before you start the divorce process, the court has little interest in anything you do with your possessions. One of the ways a judge could become concerned would be if, after you file, it is discovered that you or your spouse hid money from the other or if accounts were closed within the permission of both spouses. This includes any type of investment accounts or the sale of stocks, unless the money is split between the spouses and both agree this is what they want.
Choosing to reduce your marital debt before you divorce is a wise decision if it is possible. Not only will you have less to decide, such as who pays what, during the divorce, but you will both have more money to start your new lives once everything is final.
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