How Can I Get Divorced When We Are Drowning in Debt?

The emotional devastation brought about by the breakup of a marriage becomes even greater when accompanied by the devastation of the parties' finances. A couple living paycheck-to-paycheck may not be able to pay all of their debts and still cover basic living expenses after a separation adds another set of living expenses such as rent and utilities but doesn't add more income. While you may experience significant financial difficulty if you're mired in debt and you want to separate, your bills don't have to trap you in an unhappy marriage.

Instructions

1

Familiarize yourself with the law in your state regarding the various issues that arise from separation and divorce. Pay particular attention to laws regarding the division of marital property and marital debt. The equitable distribution laws in effect in most states specify that all property and debt acquired between date of marriage (DOM) and date of separation (DOS) is marital regardless of whose name it appears in. Equitable distribution states also presume that a 50/50 division of marital property and debt is fair, or equitable, but allow for unequal distributions in some cases. Community property states apply similar definitions of marital property and debt but tend not to allow for unequal distributions.

2

Make a list of your marital assets and debts and also any separate assets and debts that may exist. Realize that a court may order you to share in the responsibility for debt in your spouse's name if he or she is carrying more than you are. On your list, include the creditor's name, account number, balance due and monthly payment amount.

3

List your expected post-separation living expenses and create a budget based upon your income alone. Prioritize your expenses, with basic necessities such as rent, utilities and groceries coming first. When prioritizing the payments on your recurring debt, satisfy secured debt -- debt that is attached to collateral such as land or a car -- first. Secured creditors can repossess their collateral and leave you homeless or without transportation. You may find yourself unable to pay all your debts after separation, and if you must let any bills go, let the unsecured ones go first.

4

Review your current, pre-separation budget to determine what, if any, debts you can pay off before separating. Question the wisdom of remaining together just to pay off debt; continuing in an unhappy marriage generally increases your spouse's entitlement to your retirement assets and increases the likelihood that your spouse will incur debt for which you will be responsible. Don't stay together just for money, because this can backfire.

5

Consult with a family law attorney in your state prior to leaving your spouse. Bring all your financial information to enable the attorney to make the most solid recommendation possible. The divorce process has serious financial consequences apart from debt management, and decisions you make without legal guidance could cost you thousands of dollars and extra time in court.