The right ways of dealing with debt when separating
Debts create a lot of financial problems to people across the globe. They can come at a time when least expected especially during a separation and after the relationship ends. This makes many people to go back to a life full of financial crisis as they try hard to start a fresh life that they least expected. There are basic legal rules concerning debts that you can apply in order to protect yourself and be aware of the possible issues in case of a separation and how to go about the matter. For instance, the law clearly states that those who have been in a marriage kind of a relationship for atleast two years will face the same law that covers on the responsibility of debts during separation. It will ultimately be the same as that of married people. There are guidelines that are important for you to follow and this article will cover on the right ways of dealing with debt when separating.
Recent research indicates that breakups and separation in marriage are causes by a number of things including recession and credit crunch. The mistake that many people do is waiting too long before following the matters to do with finances when separating only top realize that it is too late for them to cover on some important issues that they would have dealt with earlier on in the relationship. The perfect ways of dealing with debt when separating is to seek for professional and independent debt help advice that will work for your advantage. In most divorce cases, debts are sorted out rather than the assets and it is important to seek the advice of a good family law solicitor who will offer the perfect advice at the right time so that issue is dealt with a lot of concern and care.
If your spouse is creating more debts even as you look forward to the separation, you are guaranteed to take the right steps in order to tackle the matter. The best way is taking the initiative to protect family financial position since you are jointly liable for the debts in case you are both signatories. This should be immediately avoided so that the situation is countered and that no one is misusing the money that you have been keeping and saving for a long period of time. Delays in this case lead to resentment, shock and undue hardship taking you back to a difficult position and stating life with a lot of difficulties as long as financial maters are concerned.
When dealing with debt when separating, it is important to check on joint accounts such bank accounts. You are allowed to ask your bank to freeze the account as you look forward to reaching a perfect financial settlement. The repercussion of this decision is that neither of you will be allowed to draw from the accounts until when the issues are solved. However, the bank can at the same time arrange for joint signatures which will allow drawing sums of money. Couples in conflict are allowed to close the account and come up with an agreement about some certain amount of money which will be paid among them. It is a preferable step and most important if you were the main earner and that there are children to take care of.
There are stipulated laws that may sound harsh but you just have to follow the court procedures in order to avoid some serious court wrangles. For instance, the law strongly states that debt that taken by any of the spouse while together will be equally shared no matter what. Any debt taken by either of the spouse after separation is also shared equally and you will not be in a safe side by claiming that you were not the culprit. Creditors can also collect debt from those who signed for the debt. If the two of you signed, creditors are allowed to collect from either of you. The golden rule is that you should never ignore a problem because the longer you leave it, the more serious it gets. Another golden rule is that you should never borrow money to pay debts since it could lead you to lose your home.
Barclay DeVere can help you with mediation over financial issues call us today to find out more