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Divorce and credit card debt consolidation

Divorce Assets, Credit Card Liabilities, and Debt Consolidation

The mix of two difficult crises – divorce and debt – can multiply the potential disastrous effects of each. Yet, perhaps without much surprise, the two are indeed often seen together or are precipitous of one another.

When debt spills over the brim and affects your marital life, suddenly more than one troubling concern is on the line. Dealing with the debt alone is a monumental undertaking, aided by the support from friends and family, but the additional burden of looming separation or divorce adds dramatic complications.

Opposite the chain of events of financial debt leading to divorce,  there is also the condition of certain or impending divorce causing missteps with credit and credit card debt.

When dealing with either chain of circumstance, it is important to first know how your situation intersects with the laws of the jurisdiction applicable to you.  Research the laws of your state to see how your marital situation will affect judgement of responsibility for outstanding debts, whether you are living together, living apart, legally separated, or have filed for divorce with a myriad of accompanying circumstances.

It is important not to make assumptions of who owns responsibility for what debts simply by what seems right to you. The matter is complicated by issues of when the debt was created, under whose name or names, what the status of the marriage was at that point in time, or whether a business entity was involved.


Making a Move to Consolidate Credit Cards

The first priority is to handle any pursuit of debt consolidation loans with the ends in mind. It should go without saying but is reemphasized here that dealing when with debt, especially a step such as to consolidate credit cards, and other unpleasant situations should be approached in a grown up manner, attending to the facts of the matter and pursuing a positive outcome.

As emotions can obscure good judgement, it is important to stop blaming each other for his or her spending habits and past debts. The aim is not to fix the past but to plan for a new future. Lastly, don’t let debt become an impasse when children are involved, which could complicate the situation even further.

Contacting a debt counselor when not in a volatile state and forging a plan to move forward and assign steps to be taken can become the light at the end of the tunnel.

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