This is part of our Financial Literacy Month Question and Answer series

Question: My spouse and I are getting divorced and we have a lot of debt. Do you have any tips I should know about?

Answer: Yes, this is a very important topic. In your divorce, you’ll probably each take some of the debt (and whatever assets are available). The divorce decree will state who is taking responsibility for which debts.

The thing you have to know, however, is that the credit card companies don’t give a “hoot” about the divorce papers. If it’s a joint account, you are still responsible and if your spouse isn’t able/willing to pay it, they will come after you. This is true for state and federal income taxes, too.

A client recently came to me with this very situation. Her ex-husband had been paying on the debts just fine until he had a very bad motorcycle accident and ended up in bankruptcy. The creditors came after her for the balances.

The best thing you can do is to get all the joint debts paid off out of the proceeds of the assets if at all possible.

Warmly, Cindy

P.S. I am a Certified Divorce Financial Analyst and can help you with these matters. Please contact me if you need help maximizing the division of your assets and minimizing the debt issues.