When facing the end of a marriage, many individuals in California may focus a significant portion of their attention toward gaining awareness of marital assets and finances. While understanding the value of the marital estate can be helpful, it might not always be the only aspect to address. Since marital debts could also have a substantial influence on the outcome of a divorce, gaining an understanding of outstanding financial obligations prior to negotiations could prove vital.
Over the course of a marriage, it might not be uncommon for couples to apply for joint credit card accounts or automobile loans. During a divorce, any remaining balances on these accounts will be subject to the process of property division. The same may be true for medical and mortgage debts and these can be a major concern for those facing the end of a marriage.
Even if one person agrees to responsibility for the debt, creditors may still seek to hold the other party responsible should payments fall behind. Regardless of what is stated in the terms of the divorce decree, past due accounts can affect the credit scores of both parties. Should one party obtain relief from joint debts through outlets such as bankruptcy, the other person could end up liable for the full amount owed.
Understanding how debts may influence the outcome of a divorce could prove vital to preparing for negotiations, but it can also be a challenging task. When facing the end of a marriage, a person in California could choose to consult with an attorney for guidance in understanding every aspect of the process. An attorney can work with a client in forming a strategy to pursue the best outcome achievable concerning his or her financial future during legal proceedings.