There is no doubt that divorce could be a traumatizing and highly disturbing event both for the man and woman. Apart from the emotional angle which needs to be addressed, there are other areas too which need to be taken care of. Custody of children, the splitting of wealth and properties, and most importantly finding out ways to split debts are also things which must always be kept in mind. In this article, we will have a look at 5 ways to tackle debt so you can pay it off once a divorce has gone through successful.
1) Stop Future Charges
The first thing which should be done is to ensure that the future charges that arise out of debts. You must sit down and make a list of all debts and if there are debts, they should be classified based on the applicant who has entered into it. Though they might have used the debt commonly before a divorce, it is important to ensure that it is properly addressed.
2) Look For Early Settlement
You don’t have to be debt free when you hire a family law attorney. However, once a divorce has been settled, there is no point postponing settlement of the debt. It should be done as early as possible. This will avoid piling up on unwanted interest payment especially when it comes to high-priced debts like credit cards and personal loans. If there is a need to borrow some low-cost debt to settle the high-cost ones, it would not be a bad idea.
3) Look For Unsettled And Old Accounts
When you are breaking up with somebody for good, there is a need to understand that there should not be any strings left unattended. This is especially true of old accounts and debts which one might forget in the hurry. This could come to haunt both the stakeholders at a later point of time and therefore should be avoided at all times. You must do your homework properly and try to ensure that such unpleasant surprises are avoided at a later point in time.
4) Transfer The Balance
Another good way to amicably settle old debts after divorce is to transfer the outstanding principal to the new account. This will be helpful if you are not in a position to clear the debt upfront because of obvious reasons of funds constraint. However, while transferring the unpaid principals, you must be sure that it is done professionally and legally to avoid problems later on.
5) Have The Right Backups
Having the right second line of defense and backup is also important. If one of the stakeholders refuses to honor the commitment, you should not be found wanting and you must try and come out with some second line of defense to ensure that things are not allowed to drift. Any loopholes should be closed without any delay and delaying only adds to the pain and it also comes with a huge cost of interest and other problems.
Hence at the end of the day there are quite a few things which must be taken into account whenever a divorce happens. The consolidation, bifurcation and settlement of debts could be a thorny subject matter which needs to be addressed carefully.