Divorce and Joint Debt: A Reality Check…
Your divorce has been finalized, marital assets have been divided and any remaining marital debt allocated to the respective spouse. In a perfect world, you could shut the door on that chapter of your life and move on. BUT life isn’t perfect and the assignment of debt repayment to your ex-spouse does not mean that you are free from owing the debt.
Your divorce settlement terms are between you and your spouse. The settlement may have assigned the repayment of the debt to one spouse but that did not change the creditor’s right to collect a joint debt. The creditor may address their collection efforts to both debtors until the debt is repaid, refinanced or resolved.
Marital debt will remain on credit reports for both spouses until the debt is resolved. Late payments by the spouse that is assigned debt responsibility will be reflected on the credit reports of both individuals.
Are you struggling to pay creditors…tired of creditors calling…worried about your credit score? Contact Mills Law to discuss your situation with one of our attorneys: (919)934-7235