Divorce is an emotional process and can have a huge impact on your financial situation. Legal Panda want to help you avoid incurring any debt during or after the process of divorce by helping you to understand the related debt. If you wish to talk to someone in person please call to reach an operator who is more than happy to receive one of your calls and guide you in the right direction. We also give advice on anything divorce related so if you have any other question do not be afraid to get in touch. If you would rather contact us via email then email email@example.com to reach our mailbox. We also handle financial advice. Our team is available 24 hours a day 7 times a week.
What is Debt?
Debt is when you owe money to either another person or to a financial institution. Divorce can cause a huge amount of debt and can add further stress to your situation. It is important that you handle your debt sufficiently as it can lead to further problems in relationships, mental and physical health, and ability to borrow money. We want to help you – Legal Panda has helped over 30,000 people in the past 6 months handle and overcome their debt. A major part of the debt incurred from divorce is the legal debt. Legal issues are financially draining to solve and can easily stack up debt. You may also have had to split your possessions with your partner which has caused your financial state to plummet.
How Can I Minimise The Impact of Divorce On My Financial Current Financial State?
The main problem arises when you are unable to pay other debts because of the strain divorce has had on your available finance. You may end up being behind on credit or loan payments as a result. This can impact your credit rating if they continued to be left unpaid.
The first thing you must do is figure out which of your debts must be paid back first. These are known as priority debts and could result in you losing your home or possessions. You may even be taken to court by the people or institution that you owe money to.
Take note of all joint debts. These are debts shared between you and your ex partner. This could be a joint bank loan, overdraft or mortgage. Understand that both partners are liable for the repayment of the debts. This means that if one partner refuses to pay back the debt then the financial institution you owe money to could ask you to repay the debt instead.
You can call the institution to inform them of your divorce and hope that they can make changes. Some changes could include:
- Cancelling your partners access and ability to spend to prevent further debt from racking up.
- Settle on a reduced amount to be paid back due to your inability to pay back the debt in full. The creditor may ask for the money back in full at any time as these agreements are usually not legally binding.
To avoid crippling debt you could also try and reach an agreement with your ex partner to pay back the debt together. This would avoid any strain on your bank account as it becomes a joint effort to repay the joint debt. Joint debt can have an impact on ether partners ability to take out any credit in the future as their credit score is heavily affected. So it is . in the best interest of both partners to repay the debt on time and in full -to the best of their ability.
Divorce Debt Advice
What Should I Do if my Ex Partner Refuses to Pay Back the Debt?
Agreements between ex couples can start out great but then end up in a worse state. This can be the result of a few scenarios, for example, one partner was able to keep up financially to begin with but has now been struggling to keep up. It may also be a result of the relationship between the individuals worsening and causing a fail out and therefore a lack of interest in keeping up to date with payments.
If you believe your agreement is not being met then you should try and keep creditors as up to date as possible on what is happening in your situation.
For more divorce and financial advice call 020 913 7409.