If you find yourself part of a high asset divorce, it’s safe to assume you’ll spend a lot of your time seeking ways to retain as much property as possible.
From your family home to cars, from electronics to collectibles, there are plenty of assets that deserve your attention.
While asset division is important, many people come to find that they have to deal with quite a bit of debt during the divorce process.
Any marital debt, regardless of the type or the reason for it, must be divided in the divorce. It may not be something you want to think about, as no one wants to take on debt, but it’s all part making a permanent split from your spouse.
Credit-card debt, for example, is extremely common. Even people with a lot of assets often find themselves buried in this form of debt. If this sounds familiar, here are some things to consider when you have credit-card debt:
- Do your best to leave you marriage with no joint debt
- Cancel all joint credit cards before going through your divorce
- Consider the benefits of using cash savings to eliminate credit card debt
- Separate debt onto individual credit cards in each person’s name
A high asset divorce has a way of bringing large amounts of debt to the forefront. If you don’t have a plan for dealing with this, it will complicate matters in the future.
Just the same as property division, you have a variety of legal rights. Knowing how debt will impact your divorce and future finances is critical to your long term success.