Property division is essential to the divorce process, allowing the involved parties divide assets and liabilities, including debt. After finalization, it can be easy to determine who will be responsible for which debt. However, it may be more complex when a collector starts knocking at your door for your former spouse’s overdue payments.
Typically, a divorce only ends your marriage. It does not automatically relieve you from personal responsibility for debt you took with your former spouse during your marriage. Even if the divorce assigned the debt to one party, both of you can still be liable if you never updated the agreement with your creditors.
This scenario often happens with debt named under you and your former spouse, such as mortgages, auto loans, joint accounts, credit cards, utilities and medical bills. Even if you send your creditors the divorce paperwork, it may not end your liability for the debt.
How to end liability for your former spouse’s debt
You can end your responsibility for these overdue payments by removing your name from the agreement or refinancing the debt. You and your former spouse can expedite these changes during or after the divorce. Unfortunately, these options may only be possible depending on the circumstances.
Navigating tricky financial issues with a former spouse
Sometimes, you can encounter vagueness concerning financial issues, especially if you remain a debt cosigner with your former spouse long after the divorce. Staying with the old setup could be essential, especially if your former spouse cannot shoulder the loan alone. However, you may need legal counsel once a collector goes after you for your former spouse’s overdue payments. Doing so can help you navigate how to deal with the creditors and what to do about your setup with your former spouse.
