When it comes to divorce, each person is expected to declare all assets and liabilities. This is important because, like any other business partnerships, divorce in Wheat Ridge, Colorado, as well as in the rest of the United States, can create difficult finance-related problems later.
Recent reports agree that, despite the complexities of filing for a divorce, it has become very popular for couples with cases increasing annually throughout the country. Those who cannot agree, however, should consider the financial impact that divorce-related issues have prior to signing the divorce papers.
According to experts, couples should look at their divorce as a business partnership termination agreement and, therefore, treat it as such. During the divorce, both parties should agree to partition assets and liabilities in a manner agreeable to both people during property division. It should be written in the divorce decree and enforced.
Secured and unsecured loans, vehicles and the marital home all can have a significant effect on the financial standing of both parties, even if the divorce has been finalized. In many cases, the failure to assign these assets and liabilities may cause long-term problems that may impact future prospects.
One consequence of the failure to have assets and liabilities listed in the divorce decree is that if the person who is responsible for the payment of the assets fails to pay on time, the other person may have his or her credit scores affected, even if he or she no longer has anything to do with it.
If that person decides to buy a house in the near future, that spouse may find that it won’t work because the former spouse failed to pay the mortgage or credit cards.
Since lenders can’t be forced by the courts to simply remove a person’s name from an asset or debt, it is the responsibility of the divorcing couple to speak to a knowledgeable legal professional about how to properly transfer such ownership. Legal professionals have the knowledge and the right connections to properly move proprietorship of the marital assets and liabilities while ensuring that it is still enforceable by the local courts.
Source: Summitdaily.com, “Financial Facts: How divorce affects your mortgage,” Bob Kieber, April 13, 2013