Divorce brings about a great deal of uncertainty, especially when the stakes are high. One important matter that is easy to overlook in the scramble of divorce preparations is the division of marital debt.
The debts you take on can affect the trajectory of your life just as much as the assets you keep following your divorce. By understanding what happens to debts in the divorce process, you can plan accordingly and take the appropriate action.
Do you split debts with your spouse in a divorce?
When it comes to the division of marital property in your divorce, Georgia follows a policy of equitable distribution. This means that all shared property, including debts, divide among spouses in a way that the court deems fair based on individual contributions and other circumstances. The result is not necessarily a 50/50 split of debts – instead, it is possible that one party will receive a majority of the debt while also keeping a greater share of assets to match.
Should you pay off your debts before divorcing?
Whether you decide to settle your divorce in court or through amicable mediation, the matter of debt can greatly complicate the process. You should also keep in mind that each individual is solely responsible for their share of the debt, which may be a great burden on one or both parties after the transition to a single-income lifestyle. To help facilitate a smooth transition, you and your soon-to-be ex-spouse might discuss the possibility of clearing away as much debt as possible before proceeding.
Debts add another layer of complexity on top of an already strenuous divorce process. Your legal team can help you navigate the topic of debt division and guide you toward a favorable outcome in your divorce.