The divorce process involves a lot of issues that must be resolved. If a couple has children, they must establish a new care routine for them. However, apart from property division and child custody, debt is also an issue that must be addressed during a divorce.
After the final decree and orders are filed, you might want to know if you can get rid of debt following your divorce. A skilled Appleton divorce attorney can explain your options on this matter during and after a divorce. They can help reduce your debt obligations after your income might decrease because of paying support or earning just your own income.
Marital Debt Division
In the state of Wisconsin, marital debt is divided equally between the divorcing parties. Marital debt includes a car loan, mortgage, joint credit card, and medical. Your lawyer understands your financial situation to ensure your marital debt is resolved fairly. This can help improve your financial situation after divorce. Without an attorney handling your case, you may end up with more debt than you deserve.
How to Best Resolve Debt After Divorce
After the completion of your divorce, you must plan to resolve your debt. Apart from working to decrease or get rid of your share of marital debt, you may deal with personal debt like a credit card under your name or a school loan. To resolve your debt after a divorce, here are steps you can take:
- Take advantage of some budget resources you can find online. Such programs can track debt, income, savings, and investments. With some programs, you can link your creditors to your account to know how much you owe them and when you must make payments. Also, this lets you see your balances whenever you want.
- Speak with a credit counselor. If you want to improve your credit after divorce, a credit counselor may be able to give you trusted advice.
- Consider refinancing or renegotiating. As you deal with certain debts alone, you can renegotiate with your creditors for payments you can make based on your current financial situation or refinance them.
- Liquidate assets. Selling a new car and getting rid of the huge payment can help you resolve your debt issues. If you get the family house, you can also sell it and use the proceeds of the sale to pay your debts down.
- Seek help from your family or friends. Some family members or friends may be able to lend you the money you can use for paying down your debts. These people understand how tough it is to get back on your feet following divorce.
