Many divorced couples in New York understand how problematic property division
can be if not managed properly. Often times, people are still held liable
by creditors if their name is still attached to the marital home. If the
divorce or separation has not been finalized, an individual can still
be held liable for the debt incurred by an ex-spouse for non-payment.
This may also create a challenge for those attempting to obtain a mortgage
for a new home after the divorce has been finalized.
Monitoring personal credit scores may be one of the most effective ways
to learn if something is amiss. For many people, credit reports can serve
as an alert if there is outstanding debt that has been incurred by the
former spouse. Creditors typically require a copy of the divorce decree
in order to confirm the legal status of the marriage and liability of
each party involved.
Creditors often hold an individual accountable for joint debt as long as
the marriage is still recognized as being in effect. If the marriage has
not yet legally been terminated, problems may occur from an ex-spouse's
nonpayment or if a creditor requires a signature from the other party
as well. If the couple is still legally joined, an individual may need
an ex-spouse to sign a quitclaim deed to dissolve any interests in the
newly sought-after asset.
People who are planning to initiate a divorce in the near future may benefit
from consulting a
divorce attorney as early as possible. Legal counsel may be able to help a client
avoid any unforeseen challenges or mistakes that could have long-term
consequences on building a new future, through the negotiation of a comprehensive
property settlement agreement.
Source: credit.com, "How to Divide Your House in a Divorce", Scott Sheldon, July 09, 2014