Divorce can interfere with your financial plans, especially if you tied them to the marriage. For example, think about the credit card debt or mortgage you took on after consulting with your spouse. How will such debt be divided between the two of you following divorce?
It depends on several factors, including the state laws at play. While some states divide the marital estate equally, Michigan follows the equitable distribution model. It means that what you end up with may not be exactly equal to what your ex-partner gets. Here is more on what that means.
Other factors will come into play
The judge will consider some aspects of each party before divvying up the marital estate, such as the age and health of each spouse, their contribution to the marital estate, the length of the marriage and other factors that may be relevant.
For instance, you are likely to end up with more debt if you were the family’s breadwinner since you may be in a position to pay more. However, if you maxed out credit cards expecting to share the financial burden after divorce, you may find yourself paying a significant portion of that debt alone.
Creditors can still come after you
If your ex-spouse defaults on a debt to which you are a signatory, creditors may come knocking at your door. This is because divorce does not officially release you from outstanding financial obligations. In such a case, you need to be well informed on the steps to take, including restructuring the terms of the debt and clearing your name.
You need to take the financial part of your divorce proceeding very carefully. Since you may have to live with some of the decisions made, you need to know and protect your rights.