With an estimated 66% of divorcées sharing debt with their former spouses, it is a major part of the divorce process. But with so many avenues to look into and so many technicalities, it is natural to ask yourself—what am I even doing? Navigating collective debts can be daunting, but preparing yourself for the challenge can aid in your journey. Recording live from Walt Disney World’s Swan Resort, Jade and I share our personal stories and practical tips to manage debt during divorce.
The first step in managing your debt begins with identifying them. Running credit reports for yourself and your spouse can help to point you in the right direction. If you share any credit cards with your spouse, it may be beneficial to cut off their access to the card. This may save you in the future from paying off unexpected charges.
I referenced the previous episodes, advising listeners to add their debts to their running worksheet of assets. Maintaining a running document gets you a visual representation of your finances and the areas you may need to work on. Unfortunately, the debt that you walked in with—along with student loans—remains your debt.
Any debt acquired during the marriage is up for negotiation. With the help of a CDFA®, couples can split their debt in an amiable manner. Whether it's negotiating the responsibility for a joint mortgage or figuring out how to manage joint credit cards for shared expenses, the advice given is both practical and empowering.
66% of divorcées share debt with their former spouses
Managing debt during a divorce can feel overwhelming, but with careful preparation and informed decision-making, it is possible to navigate this challenging aspect of the process. By identifying debts, establishing a clear picture of your finances, and working with professionals like a CDFA®, you can move forward with confidence.
Key Takeaways:
Identify and Monitor Debts: Start managing your debts by running credit reports for yourself and your spouse to gain a clear understanding of your financial situation. Keep track of debts in a worksheet to stay organized and identify areas that need attention.
Secure Your Financial Standing: If you share credit cards with your spouse, consider cutting off their access to avoid unexpected charges and secure your financial position during the divorce process.
Negotiate Debts Acquired During Marriage: Any debt acquired during the marriage can be negotiated and split amicably with the help of a CDFA®. Work together to establish fair terms for managing joint debts.
Seek Professional Guidance: Enlisting the expertise of a CDFA® can empower you to navigate debt during divorce confidently. They offer valuable insights and practical advice to help you make informed decisions and reach fair financial agreements.
Connect With Us!
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Josephti Cruz on LinkedIn
Divorce might be the end of one chapter, but it’s also a brand-new journey filled with hope and growth. Join us for practical tips for financial empowerment and insights to make this time a little less daunting.
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