Upon deciding to dissolve a marriage, many individuals in Arizona and elsewhere may have concerns about how the outcome of the situation will affect their finances. Untangling the financial threads of a marriage during divorce can be somewhat complex at times, especially when debt is involved. Understanding the impact marital debts could have on the outcome of a divorce could be paramount to protecting one’s financial future and the presence of debt could influence the decisions one makes during the process.
Marital debts can come in a variety of forms and each party’s responsibility for financial liabilities may depend on the variables present. As Arizona is a community property state, all marital assets and debts will be divided equally between both parties during legal proceedings. With marital debts, this could include anything from credit card bills and auto loans to even medical bills and remaining balances on a mortgage.
Even if the other party agrees to responsibility for certain debts during legal proceedings, a divorce decree doesn’t necessarily provide a person with protection from creditors should accounts fall behind. In addition, should the other party file for bankruptcy in the future, creditors may still seek repayment from any liable party. While paying off debts before opening a new chapter in life could be the best available option, it might not always be possible or even preferable.
Marital debts can play a significant role in the outcome of a divorce and knowing how best to address such topics could prove vital. When facing a similar scenario, a person in Arizona could benefit from consulting with a family law attorney for guidance in understanding all his or her available options and how best to prepare for what comes next. An attorney can work with a client in developing a strategy to pursue the best outcome achievable concerning his or her future during subsequent legal proceedings.