Divorce Debt Settlement Attorney Denver

What About Debts?

In every marriage there are assets and there are debts. Some of the debts are incurred to buy the asset (such as a boat, a car, furniture) and some debts are incurred to pay for various items that do not secure the debt (credit cards, etc.).

Many couples have joint credit cards, joint lines of credit that are used for various purposes and usually secured by the home. Couples routinely have bank accounts and mortgages in both names. Naturally, both parties are responsible to the lenders for the repayments of these debts. The lenders don’t care who pays them back and they don’t care what a divorce court thinks about the repayment. Lenders simply want their money returned to them.

Strangely, even if you have never used the credit card or never drove the car in question, or never used the items purchased by the credit card, you are responsible for the repayment of the debt. The lender can go against either party to collect the debt. Such an action affects both credit scores.

The creditor (the lender) is not a party to a divorce action and their contractual rights cannot be affected by a divorce court. The lender continues to have the ability to go after either party. That is why we work to make sure that your settlement spells out who is going to get which debt and what happens if that person does not honor the debt. You need to have remedies in case your spouse does not do what he or she agrees to do.

You need to know what happens if one of you take bankruptcy on the amounts the person agreed to pay. You need ot know what to do about debts incurred by your spouse that you did not agree to or know about. Legally, any debt incurred during the marriage can be determined to be a marital debt, even when the person’s name is not on the the debt. As such, each party can bind the other party without even realizing it.

Know your rights and protect yourself when things do not work out between your spouse and yourself. Call and get the representation you need in these difficult times.

Call our Denver Divorce Attorney today to Schedule a Consultation at 303-322-0038 regarding Debt Settlement in your Divorce case in Denver. Also get our FREE SPECIAL REPORT – Hidden Secrets of Divorce in Colorado.

Nicholas Family Law
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