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Divorce does not have to mean a financial failure

Ending a marriage can be a difficult task not just emotionally, but also financially. Delaying filing for divorce due to fears of the potential financial impact is not necessarily ideal, many people in New York do so. While this type of financial concern might be valid, it can also be addressed beforehand in order to make divorce proceedings as straight forward as possible.

Before making any definitive plans regarding the handling of finances during or after a divorce, it is important for both parties to understand exactly where they stand. This usually means requesting a full credit report that discloses what accounts individuals are named on. Some people are surprised to discover that their spouse had secret accounts without them, or that they were named on accounts that they did not know existed.

From that point, the handling of these accounts can typically be addressed during property division. Couples in New York can determine who will be responsible for repaying which debts, especially if only one party accrued most of the debt on certain accounts or credit cards. While it is usually a good idea to remove an individual's name from an account that he or she will no longer be responsible for, it is not always possible to do so.

Divorce agreements often include how couples have decided to share debts and other financial obligations. However, this does not necessarily protect anyone from creditors should an account fall into default. Because of this, it is often a good idea to consider each party's ability to handle the debt and what would ultimately be in the best financial interest of everyone involved.

Source: marketwatch.com, "Divorcing? How to avoid destroying your finances", Jill Krasny, Aug. 29, 2016

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