...it’s important to get a clear picture on how much debt there is and determine which spouse is responsible.
(PRWEB) April 21, 2014
Online divorce service MyDivorcePapers.com (MDP) works with many couples who are intimidated by the financial aspects of a divorce, particularly what to do with marital assets and debt. Of the two, it’s debt that causes the most sleepless nights. To aid these individuals in their journey, MDP has put together a new tip sheet offering three advanced tips on successfully navigating this sometimes tricky component of divorce. Here’s what the company recommends.
Determine Who Is Responsible
When working through the divorce papers, it’s important to get a clear picture on how much debt there is and determine which spouse is responsible. Many couples decide to split the responsibilities, which is especially appealing when both work a full-time job. MDP urges couples to think equitably in the process.
“Splitting the marital debt 50/50 seldom works because — while both parties may be employed — pay is likely unequal,” a MDP representative explained. “Furthermore, if kids are involved, it’s important the obligations of the custodial parent are considered because those responsibilities come with a great deal of financial obligations attached, and child support seldom goes far enough in providing adequate care for the child.”
Take Inventory, Take Charge
Once marital debt is inventoried, MDP notes, a party has the ability to take charge of the financial situation. “Provided that you’re both working together for an equitable solution and there is no revenge debt spending going on, you should now have everything you need to own the situation,” the rep said. “Your next item of business should be to tally up how much you owe and weigh that against your basic living expenses, income, and assets.”
Devise A Workable Payment Schedule.
Once the couple has decided to file for divorce, and they’ve reached an agreement for who is responsible for marital debts and by what share, MDP urges the parties to get a workable payment schedule in place.
“Look at the debts you have — both principal and interest,” the rep stated. “If you can, get rid of high-interest debts first. You might also consider consolidating all debt into one loan payment. That way, there are less moving parts for you to worry about each month, and you may even be able to save money depending how the interest is structured.”
After marital debt is accounted for, MDP advises parties to set a reminder to avoid late payments each month. “Keep after it, and pay more on the principal when you can. Before you know it, you’ll feel more in control of not only your debts, but savings as well.”
MyDivorcePapers.com provides affordable divorce forms solutions for those looking to file for divorce. Paperwork can be completed and compiled in 45 minutes for immediate use.
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