by Gene Frendo
Separation and divorce impact a family in many different ways, but the financial impact can be one of the most stressful aspects, as dividing up savings, property, and outstanding debts often leaves both parties worse off, if not heavily in debt.
Separation and divorce bring with them reduced income, increased expenses, and in most cases both.
Where, perhaps, there were two incomes supporting a household, you now have two incomes supporting two households. The benefits of joint tenancy are also lost e.g. where one income covered daily expenses while the other paid the bills, both now have to be met by the one income. To add to this, there are often legal costs associated with the division of assets and custody.
Being married or in a common law relationship does not make you responsible for your partner’s debt.
The only debt anyone is responsible for is a debt they have agreed to take on by signing or co-signing for it. The fact of the matter is that couples often have joint debt such as a mortgage, car loan, or lines of credit, and separation or divorce does not immediately change that.
If, after a separation or divorce one or both parties do not continue to keep up with the debt, the lender does have the right to pursue either party for the joint debt in question.
That is why it is important that upon separation or divorce there is a clear understanding of not only who is paying what, but also that there is follow up or confirmation that the debt is actually being paid.
It is not unheard of for a recently separated or divorced individual to find a notice in the mail or receive a call from a creditor informing them that a debt they thought was being paid, in fact wasn’t.
You are not alone. Separation and divorce is certainly an important cause of financial difficulty and one that we have dealt with often, here at Frendo and Partners.
If you find yourself being chased for payment for a debt that you thought was being paid by your ex-partner, or you are unable to cope with the debt left from a previous relationship, you may wish to explore your options. At Frendo and Partners, we understand that above all else, people need an opportunity to explain their side of their financial story in detail and to be heard. We equally understand that during times of extreme stress, people don’t always make the best or most informed decisions. For this reason, Frendo and Partners offers a free, initial meeting to review your situation in detail so that a Licensed Insolvency Trustee can help you make an independent and informed decision about what to do next.
You can schedule this free meeting by calling: 289-273-2841 or emailing: gene@frendoandpartners.com.