Divorce not only leads to division of relations, but also to the division of salary. It clearly concludes that the debts and expenses which were earlier handled by two people together will now be handled single-handedly. Divorce always changes the financial situation of a person.
In the case of a debt consolidation loan, most of the time the amount is too high to be paid by a single person
Post-divorce, calculation of total debts and assets is done, and this is the time when it’s decided who gets what! Usually, the idea of such calculation is to give equal part of both assets and debts to both of them, but this may differ from country to country depending upon the divorce and debt consolidation laws. Generally, the total evaluation of outstanding debt is done and assigned separately to both individuals.
The main challenge here is that it becomes difficult to decide which expenses were incurred by which individual and who exactly has to repay it. Also, both the parties should agree to the assigned settlement of dues which always does not happen. There already exist a lot of differences between both parties, and financial decisions become one more after the divorce. Sometimes it’s a task to make both the parties agree on all the debt settlement process. There are many cases where either of the spouses is a homemaker and has no source of self-earned income.
The discussion on who gets what after divorce can be done by both the parties with their consent before getting officially divorced, as the official divorce procedure takes a certain period of time. During this waiting time the “going to be divorced couple” can sit together and discuss in detail about the debt and asset share after the divorce is completed. Also if any changes in assets authority are to be done, then it can be done during this period – e.g., making changes in the nominee name. This makes it easy for both the parties and the financial institutions to have a clear idea about the repayment of the debt.
After the couple is officially divorced, they are individually liable to pay off their expenses. If they fail to pay the same, they can hire an attorney for the same or approach a debt settlement company (like www.nationaldebtrelief.com, for example) to guide them in the whole process of repayment of the loan.
Debt consolidation after divorce is a task to both the spouses in terms of repaying the debt. But the most affected authority due to the divorce are the loan-providing institutions. At times it becomes very difficult for the collection officers to collect the final recovery amount of the debt from the divorced parties as they are in a continuous dispute of their debt share and are reluctant to pay the ex-spouses’ part of the debt.
In these situations, at times even the financial institutions are confused as to who exactly is to hold a charge for the liable dues. Also, cases like one-sided filing of bankruptcy make it even more complicated.