Debt may be concern during property division process in Kentucky
When many people think about the areas of divorce that concern them most, they may immediately think of their assets. Property division is a significant part of the divorce process, and many Kentucky residents facing these proceedings often hope that they will not lose everything. Of course, when it comes to debt, most people would rather not get stuck with payment obligations.
Just like with assets, debt also gets divided during divorce. However, the manner in which the debt was accrued could impact who ends up with what liabilities. For instance, due to equitable division laws, if both individuals had a joint credit account, then both parties would have some responsibility to address that debt. On the other hand, if one person created an account in his or her name only, the other party would not hold liability.
Because debt is divisible during divorce proceedings, many people may find themselves needing to negotiate when it comes to how much debt they must address just as they may need to negotiate when it comes to what assets they could keep. In some cases, both individuals may choose to remain responsible for their joint debt even after the divorce is completed. However, this action may be tricky as one party may not feel the need to make his or her portion of the remaining payments, leaving the other person on the hook.
Debt, just like assets, can be difficult to address during divorce. Because ending a marriage can cause financial hardships in itself, many Kentucky residents certainly do not want to end up facing more debt than their fair share. If individuals are concerned about how property division proceedings could impact their levels of debt, they may want to find out more information on marital debt distribution.
Source: wisebread.com, “What Happens to Debt After Divorce?“, Holly Johnson, March 30, 2018