Divorce Agreements and Financial Responsibility


During a divorce, detailed negotiations over marital assets and debts usually occur. The goal is to craft a settlement between the parties, who each hope to get the "better half" from their former better half. Mediators or divorce lawyers on each side work with the parties to help reach an agreement. The best agreements allow each party to feel as though they have gotten the better deal.

A divorce settlement agreement clearly outlines which party receives control and ownership of specific assets and who is responsible for payment of particular debts. During negotiations, each party may make compromises and concessions in order to get more of what they want from the agreement. A spouse may agree to take on a debt in exchange for an asset, or give up a treasured asset in order to ditch responsibility for a bill.

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During negotiations, the divorce lawyers of the parties communicate directly with each other. This can eliminate many direct conflicts between the spouses during the divorce. Each party's lawyer presents offers to the other party's lawyer on behalf of their client.

The divorce lawyers usually have a great deal of contact with their clients during this time. In many cases, spouses who are willing to make the most compromises are able to reach a suitable agreement faster. Deals that cannot be honored should not be made, but spouses who are able to put bitterness aside in order to come to an agreement are often happier with the process.

Divorcing parties should communicate openly with their divorce lawyers and be realistic about their expectations and abilities. After a divorce settlement is made, it is submitted to the court for approval and generally becomes an order of the court. When the stipulated agreement becomes an order of the court, there may be penalties for violations of the terms of the agreement.

After divorce, ex-spouses must keep up their end of the deal by paying the debts they have agreed to pay. It is important to remember that a divorce order does not alleviate ex-spouses of the legal obligation for payment of a debt if their name and credit are attached. Joint debts may become the responsibility of one party after the divorce by order of the court, but if such a debt goes into default, creditors may still pursue the other ex-spouse for payment.

Additionally, if an ex-spouse has a change of financial circumstances after the divorce is final and cannot pay debts according to the divorce settlement agreement, he or she may file bankruptcy. If both parties are legally responsible for a debt, the bankruptcy of one party may make the full amount of the debt the obligation of the other. This can force the spouse who originally had no problem honoring their part of the divorce agreement to file bankruptcy as well.

When negotiating a divorce settlement agreement, it is important to bring up any concerns you may have about debt responsibility with your divorce lawyer [http://www.totaldivorce.com/lawyers/default.aspx]. If your soon-to-be ex has been financially irresponsible during the marriage, it may not be realistic to expect this behavior to change after the divorce. With this in mind, your divorce lawyer can negotiate accordingly on your behalf.


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