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Knowing the role marital debts could play during a divorce

| May 31, 2021 | Divorce |

If you and your spouse decide to part ways, there is a chance you might face a variety of difficult choices during the end of your marriage. Finding ways to address the necessary topics could prove integral to helping you prepare to protect your future, but it can also be somewhat complex at times. 

One topic that it might be helpful to avoid overlooking is marital debt. Seeking insight on the role marital debts might play in the outcome of your divorce could be a critical part of your case. Such financial obligations will likely be subject to the process of property division, and as such, including them in our strategy for negotiations could prove imperative. 

Addressing marital debt 

Even if your debts remain at a manageable level prior to divorce, such issues could still have a significant influence over your financial future after you finalize the process. Some possible factors to address concerning debts that could help you better prepare for what comes next could include: 

  • Addressing liability:  Since Oregon is an equitable distribution state, addressing liability for marital debts could prove essential to preparing a strategy for similar topics prior to entering legal proceedings. 
  • Debt responsibility:  It could also be imperative to understand that there may be situations in which creditors might seek repayment from either party regardless of what the divorce decree states. 
  • Credit concerns:  Even if your soon-to-be former spouse agrees to responsibility for certain marital debts during divorce, should payments fall behind, your credit score could suffer the consequences. 
  • Joint accounts:  If you and the other party carry balances on any joint credit card accounts, closing these accounts could also play a vital role in protecting your financial future. 
  • Other options:  Refinancing mortgages and paying off joint financial obligations are two more examples of options that could help limit financial repercussions. 

Keeping constant watch over your credit score after your divorce could also be integral to identifying and addressing any concerns before the situation grows out of control. 

Your financial future 

It is no secret that the outcome of the end of your marriage could affect your future in various ways. Because issues such as past due accounts can have lingering ramifications, addressing such topics early on could be vital to pursuing the most favorable outcome achievable. Taking steps to better prepare for every aspect of the process might prove essential to helping place you in a better position to safeguard your financial future and approach the next stage of your life with confidence. 

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