Will Credit be Damaged From Divorce

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Will your credit be damaged due to a divorce?  Will you be responsible for credit cards or loans that are in both names?  If you wait until your day in divorce court, you may have a rude awakening – divorce doesn’t relieve you of financial obligations incurred during the marriage.

If the home is in both of your names and one party gets to live in the home, this doesn’t relieve you of liability – this is one reason if possible selling the home is the best way to protect yourself from this obligation.

If credit cards are in both names,  the credit card company can and will come after both parties if they’re delinquent on payments.  It would be a good idea to pay off credit cards and cancel them removing your name once again from a future unnecessary expense.  Meanwhile if divorce is imminent one or both parties can continue using credit cards etc., which can be an astronomical amount of money over a period of time. 

Divorce will not remove you from your obligations on credit cards – if cards are left in both names one spouse can continue using the card which may be very costly to you.

Both parties are responsible for anything that the marital couple has purchased together with both names on the loan or mortgage.  If you are a co- signer on a purchase made by your soon to be ex and he or she default on payments, you’re next in line to be dunned for the balance due.

 Logically this doesn’t seem fair if one party ends up with the house, car and half of the marital assets that you will be held accountable if mortgages, loan payments or credit cards debts are defaulted on. 

Even before divorce it is advisable to get some legal or financial counseling on any marital obligations which have both names on the loan or mortgage such as vehicles, furniture, air conditioning units, appliances etc.  Just a brief visit with an attorney, tax specialist or counselor may save you money and heartache in the future. The laws of your State will govern your decisions and you’re on a “need to know” basis at this time.

It’s again the old rule “don’t assume” anything when it comes to divorce – if you wait until you get to court the judge’s decision may in fact not be in your favor.  It’s best to get a game plan on your finances now before you get to court.

As Always,

Little Tboca

Parenting Plan Before Divorce

Do it yourself divorce can become very complicated if there are children involved. Here’s one more thing on your plate that is something both parents need to create before arriving in divorce court. 

Without a parenting plant the family law judge is left to clean up the parenting mess, because parents can’t reach an agreement. Child custody is a critical issue of divorce and without a doubt one of the most contentious matters in the family law court.

The family law judge makes decision based on the “best interest” of the children. If both parents can lay aside the marital disagreements briefly and work together creating a parenting plan that specifically supports the child or children emotionally and physically it can be a win win situation for parents and children.

If one parent is seeking sole custody of the children, he or she must provide evidence or information showing the other parent as unfit. Sole custody is often granted if one spouse has a criminal history, abusive or addicted to drugs or alcohol. Sole custody is granted at times, but not without substantial proof that one parent hasn’t been involved in parenting or is incapable due to personal issues to be a substantial parent.   

If one parent is granted sole legal custody they make decisions about education, health and well being of the child or children and can make decisions about the faith environment they will be raised in…

Joint custody is just what it sounds like, both parents work together making decision in the best interest of their children. Physical custody refers to the amount of time each parent has with the children – most parents can create a feasible plan including the handling of holidays, summer vacation and time spent with each parent. 

Bottom line is this, if father and mother can’t agree on the custody issues, the Judge must intervene and decide custody based on the “best interest” of the children. 

Divorce is super charged with emotion, anger and often times the intense desire of one or both spouses to punish each other. Parents should attempt to be rational about custody of the children and present a parenting plan to the judge that is in the “best interest” of the children.  Without a parenting plan both parties are at the mercy of the court and the judge will be the final decision maker. 

http://www.alllaw.com/articles/family/divorce/article33.asp

As Always,

Little Tboca