When people get divorced, they often have an understanding that they need to divide their assets. They know that the assets they purchased with their ex during the marriage are owned jointly and have to be split.
But what about debt? Do you still owe for debt that your ex accumulated? Is there any way that they could make financial decisions in the future that are going to mean you owe even more? There are some important things to consider.
Co-signed accounts
To start with, if you co-signed on any of these loans or accounts, then you are liable for that debt. Perhaps the most obvious example here is a home mortgage. Even if you get divorced, both you and your ex are still liable for those mortgage payments. This is one of the reasons that couples tend to sell their home when they get divorced. It allows them to end that mortgage and use money that they earn to take out a new mortgage in their own name alone.
Another thing to consider is that you may still have co-signed joint accounts that you used during your marriage. Maybe the two of you have the same bank account or a joint credit card account. You will be liable for any amount of outstanding debt, but you could also be liable for any future debts if you do not close these accounts. It’s wise to do this so that your ex cannot make charges on that account in the future – which you would also be responsible for paying.
These are just a few of the financial questions to ask during a divorce, so be sure you know about all of your options.