Divorces can be a confusing process, particularly where it comes to finances. Managing marital debt is a very important factor during divorce and can seem to be an overwhelming task. Understanding how to manage debt while the divorce is still ongoing can help ensure financial security and peace of mind for yourself in the future. If you’re going through a divorce, listed below are a few things to consider to ensure your debts are well-organized and managed through the duration of your case:
- Arizona is a community property state. This means that any debts incurred during the marriage are the responsibility of both parties. Even if the debt is only in one spouse’s name, both spouses may be liable for it.
- Consider who has been responsible for paying these debts in the past. Has one spouse been a primary wage earner? Who has been responsible for paying on each of these debts? Are you each able to continue paying according to the status quo, or do changes need to be made in the interim?
- If you’re able to communicate amicably with your spouse, do it. Not every couple will be able to come to a mutual agreement on their own, but it is an excellent option for individuals who are able to maintain open lines of communication with each other. Amicably discussing and agreeing on who will maintain debt payments during the divorce is often the best route to take.
- If you’re not able to effectively communicate about finances, a court may determine who pays. If necessary, determination of who will pay bills and debts while a divorce is pending may be handled in court and ordered by a judge if the parties cannot agree or come to satisfactory arrangements.
The circumstances of every divorce case are different, and it is always wise to consult with an attorney before making any determinations that may affect you financially. To learn more about how to handle debts during your divorce matter, contact the attorneys at OWENS & PERKINS by clicking here or by calling our office at 480.994.8824 to schedule your FREE 30-minute consultation. We remain fully operational while practicing appropriate social distancing and cleaning regimes.
