Five Tips for Dealing with Debt and Divorce: Backups

by Norris Law Group on November 7, 2014

All this week, we have gone over a series of five suggestions regarding credit and debt during divorce. In an article from July 2014, FoxBusiness.com advises those considering divorce or in the process of getting divorce to take care of five key issues regarding debt that can lead to real trouble before, during, and even after a divorce.  These issues include freezing future spending on all accounts, settling accounts as soon as possible, shutting down old accounts, and balance transfers. In this fifth installment, we will cover the importance of backing up all of your credit information and keeping copies for your records.

  1. “Create backups.” As we discussed in the previous installment, your spouse may agree to assume responsibility for some or all of your marital debts. That’s great—but don’t just take your spouse at his or her word. Look for any possible loopholes that may spell trouble for you later. FoxBusiness.com quotes a divorce attorney from Atlanta who says that he “always include a provision in…settlement agreements labeling the debt as a support obligation that is no dischargeable in bankruptcy.” This provision serves to prevent the spouse who accepts the marital debt from going on to file bankruptcy against that obligation. If your ex-spouse were to do this, the creditors would likely then come after you for the debt. Unfortunately, some ex-spouses try to get away with things like this. Your experienced divorce attorney can help you avoid such situations.

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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