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Five Tips for Dealing with Debt and Divorce: Balance Transfers

by Norris Law Group on November 6, 2014

Throughout your marriage, you and your spouse may have merged your credit accounts in order to simplify your household finances. But if you are now thinking about divorce or are in the process of getting a divorce, your finances may no longer seem so simple. FoxBusiness.com offers five suggestions of actions to take regarding credit and debt during your divorce. This week, we are taking a look at one of these five suggestions each day. We began with the importance of freezing future spending on all accounts, then why couples should settle accounts as soon as possible, and the need to shut down any old accounts. Today, we will discuss balance transfers and how they can help alleviate you from the responsibility of paying some or all of your marital debts.

  1. “Transfer any balances.” If you held joint credit accounts with your spouse throughout your marriage, you are both equally responsible for any debts on those accounts. But it may be possible that your spouse was primarily responsible for the debt on one or more accounts. If this is the case, your spouse may be willing to accept responsibility for these debts. But don’t put blind faith in your spouse to actually follow through on paying the debt. Transferring these debts to an account in your spouse’s name will absolve you from any obligation to pay them. If one spouse takes on more marital debt, then it may be offset by giving that spouse more of the marital assets as part of the divorce settlement. Your divorce attorney can help you work out the details of property division.

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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