Amicably Divorcing When There Is Shared Debt
Divorce is never easy, but when both spouses are willing to work together, the process can be more manageable—especially when it comes to dividing debt. Our Tacoma, WA divorce lawyer knows that shared debt is often one of the biggest financial concerns in a divorce. Whether it’s credit card balances, car loans, a mortgage, or joint lines of credit, those obligations don’t just disappear when the marriage ends. If you’re planning to separate on good terms, addressing debt early and clearly can help prevent future issues. Other attorneys have sent their cases to us, so know that we are ready to take on a challenge and fight for you.
Identify All Debts
Start by gathering a full picture of what debts exist. This includes joint accounts, loans taken out in both names, and any individual debts that may have been used for the benefit of the household. Pull credit reports to make sure nothing is overlooked. Being thorough at this stage is important. If either of you forgets to disclose a debt, it could complicate things down the line.
Decide How To Divide It
Once you’ve listed all debts, the next step is deciding how to divide them. Some couples choose to split everything down the middle. Others divide debt based on who is keeping certain assets, like the car tied to a loan or the home connected to a mortgage. You might also consider each person’s ability to pay. If one of you has a higher income or better credit, that may play a role in the final agreement.
In an amicable divorce, you have more flexibility to work out a fair arrangement together. Still, it’s important to put the terms in writing, either in a settlement agreement or directly in the divorce order. That way, there’s no confusion about who is responsible for what.
Watch Out For Joint Accounts
Even if your divorce agreement assigns a particular debt to one person, lenders still see both names on joint accounts. If your name remains on a loan and your ex stops paying, the lender can come after you for the balance. To avoid this, it’s a good idea to close or refinance joint accounts where possible. Transferring balances to individual accounts or consolidating loans in one name can also help separate your financial obligations.
Keep Up Communication
In an amicable divorce, you’re likely still able to communicate with each other. Use that to your advantage. Set up a plan for how each of you will stay on top of your assigned debts. Consider putting reminders in place or scheduling periodic check-ins during the transition. Staying on the same page reduces the risk of late payments and credit damage for both of you.
Get Legal Help To Finalize the Agreement
Even when everything is amicable, having legal guidance from a family lawyer helps you avoid mistakes. A clear, written agreement protects both parties and gives the court something to enforce if needed. At Robinson & Hadeed, we help clients work through divorce terms in a way that’s fair and straightforward and we also serve Kitsap County, Pierce Orchard County, and Port Orchard. If you’re going through a divorce and want help addressing shared debt as part of the process, contact us today to schedule a consultation. We’ll help you move forward with confidence and clarity.
