This is the next post in my series on enforcing a Decree of Divorce in Las Vegas, Nevada. My last article discussed one’s options for enforcing a Divorce Decree. It is important to understand that one only has a limited amount of time in which they may enforce the terms of the Decree. Also, serious financial harm can result from the other party failing to honor their obligations. An experienced attorney can guide you through the process of ensuring that all requirements are met. In this article, I will be discussing options for ensuring that your name is removed from debts after the case is completed. If you are in need of assistance then contact my office today to speak with a lawyer.
It is common for parties to have joint debts during a marriage. These debts, and their associated payment history, will appear on the credit reports of each spouse. Examples can include mortgages, auto loans, credit cards, lines of credit, and more. The completion of a divorce does not remove the name of a spouse from such debts; they will remain a co-debtor and the debt will be reported on their credit until they are removed from it. A Divorce Decree will contain provisions which provide for the elimination and removal of jointly held debts. Options for this can include one party agreeing to bear full responsibility for a debt and agreeing to pay it off as soon as possible. Other options can include a party refinancing a home into their name only, or cashing out investment accounts, with proceeds used to eliminate jointly held debts. How to best pay off these types of debts will depend on the finances of the parties.
Consider the following example. Andy and Alice decide to divorce, largely due to stress caused by their finances. There are two financed vehicles of roughly equal value, each of which is in the name of both spouses. The parties also have $100,000 of joint credit card debt as well as mortgage debt on their home. The home was refinanced within the last year, meaning it has very little available equity. The parties also have roughly $75,000 in investment accounts. Under this scenario, the Court could order that the investment account be liquidated with any necessary taxes being paid off of the top. The proceeds could be used to pay off the two cars. The vehicles could then be put in the individual names of the respective parties. One spouse could keep the house and the associated mortgage. As to the credit cards, the Court may order that the cards are no longer to be used and that each party is responsible for a certain amount of the payments until they are paid off and closed. At the end of this entire process neither party will be responsible for any debts which bear the other’s name.
The foregoing example shows a situation in which a plan is put in place for each side to leave the marriage without debt associated with the other. Problems can quickly arise, however, if one spouse fails to make necessary payments. This can negatively impact the credit of both parties and can result in future litigation. Ensuring that the parties are decoupled from each other, as quickly as possible, is important to helping all parties with moving forward. If one party does fail to meet their obligations then, as discussed in my last article, the other spouse may seek to hold them in contempt.
If you are ending a marriage then it is important that you have a plan for removing your name from community debts for which your spouse will be responsible. As a Las Vegas divorce attorney, I am familiar with the handling of such matters. I will use your initial consultation to gain an understanding of the situation and to put a plan in place. I understand that this is an important time that will impact your future. Contact my office online or by telephone today to schedule an initial consultation. We assist those in the greater metro area, also including the areas of Summerlin, Henderson, and Boulder City.