San Jose Divorce Attorney Discusses Community Debts
Debts incurred during marriage are sometimes very sensitive topics. Sometimes, one spouse is unaware of the debts that the other spouse incurred, and yet they are still made to pay for it. Therefore, it is good to know about how debts are divided on divorce.
In Tracy Achen’s article regarding credit debt on divorce, she cautions that if both of the parties applied for credit together, then each party is responsible for repaying the debt. Since creditors are not bound by a divorce decree, if the account goes into default because of non-payment, both parties are held liable for the debt. Therefore, if you think that charging up the credit card and not paying is going to stick it to the other person, you are wrong. It only makes matters worse because you will be also be charged with that debt. Your credit score will also go down based on the default and non-payment.
As long as there’s an outstanding balance on a joint account, both of you are responsible for it. So keep making the payments so that your credit score won’t go down. A divorce is already financially costly, try not to make the costs worse.
If you have questions regarding your divorce and community debt issues, please contact our office for a free consultation. Our team of Family Law Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose. Please call us at 408.279.2288 for a free consultation or visit us a www.sagarialaw.com.