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4 points to consider regarding property division during divorce

Getting a divorce is a challenging circumstance for anyone. When you and your ex worked hard and have assets and children together, the challenges you face might increase. It is imperative that you think carefully about how your divorce is going to impact your entire life. Make sure that you consider these important points:

#1: Your credit worthiness might change.

Your credit score is likely based on your income and your ex-husband’s income. Without him in the home, your income is going to be based only on what you bring to the table. This means that your debt-to-income ratio might go up. You might not be seen as being such a great risk for credit as you are now because of this. Your credit might also change if some of the joint accounts aren’t paid on time.

#2: Some assets will cost you money.

It is only natural to hang on to all the assets you can. Before you make that decision, think about what those assets will cost you. A vacation home, for example, might be nice to keep. However, you need to consider the mortgage payments, insurance premiums, upkeep and other costs associated with the property. Determine how those expenses will fit into your single budget.

#3: Debts must be divided.

You and your ex must divide up the debts. This is often a way to balance out the asset division. The thing you have to remember about dividing debts is that creditors don’t have to honor the terms of the divorce. A divorce is a civil matter between two people. Since the creditors aren’t a party in the divorce, they can still hold you accountable for the debts assigned to your ex. This can impact your credit in a negative manner if your ex-spouse doesn’t make the payments.

You and your ex might be able to get creditors to open individual accounts so you can transfer balances. Alternatively, you can consider selling some assets and using the proceeds to pay the debts.

#4: Businesses have to be handled with skill.

If you and your ex own a family business together, you have to have the business valued. You then need to decide if you will continue to run the business together, if one spouse will buy out the other, or if you are going to just sell the business. Make sure that you take a close look at the overall health of the business so that you can ensure it is valued properly.