It could take weeks of negotiations for divorcing spouses to settle their property division issues. Often, divorcing couples focus primarily on their biggest assets. Family-owned businesses, retirement accounts and real estate often lead to contentious property division proceedings.
In the eagerness to lay claim to assets in a Georgia divorce, couples sometimes overlook another part of their lives that they share. Specifically, people may think less about the debts that they owe than the property they own.
What happens to your credit card balances and other debts in a Georgia divorce?
Equitable division rules apply to property and debts
When a judge divides your property in a Georgia divorce, they make decisions based on the totality of your circumstances. They try to set terms that would be fair based on your current economic circumstances and your contributions to the marital household.
As with your shared assets, any debts that your household accrued during the marriage can be split up in divorce proceedings. A judge might assign specific credit cards to each spouse or use the balance on certain debts to justify giving one spouse more property.
Closing the account or refinancing the amount owed can help protect you from your ex defaulting on those debts. If you do not make the proper arrangements ahead of time, your ex filing for bankruptcy or missing several payments might mean that you face collection activity.
Including your debt in your plans for a high-asset Georgia divorce can lead to a more appropriate resolution to your property division proceedings.