Dividing Property and Debt in a Divorce

During divorce there is more to consider than just the legal portion. You must also think about how to divide assets, and debt. It also helps to understand what tax issues you will face.

Many parting couples manage to divvy assets by a “bartering” method. ie You take this and I’ll take that. Another idea is to sell the assets and split the proceeds. A mediator or arbitrator can also be used if a compromise cannot be reached.

In deciding how to handle debt, it’s a good idea to order your joint credit report so you know of all existing debts. Next, use this report to determine which debts are individual and which are joint. It is best to pay off your portion of the debt as soon as possible and allow your spouse to be responsible for his/her part. Agree to share joint debts even though it may seem risky. You never know what the other person will do but you can take responsibility for your part.

For further information you can refer to this article: http://financialplan.about.com/cs/divorceandmoney/a/DivorceIssues.htm