Some might think does my divorce decree shield me from my debts if my ex spouse files for bankruptcy. With the divorce decree alone, you are not shielded.
If you are a co-signer with your ex-spouse on a debt for example, a loan, or overdraft your lenders can ask the entire payment of the debt from you. Even if you divorce decree assigns that debt to your ex spouse. Because even if they are given that specific debt, if they default on the debt in anyway the debt creditors will come after you as well.
When you become divorced and your ex spouse owes money you should do a few things. First you should try to make all attempts to have the larger part of funds classified as alimony or support. These debts will not be discharged in a bankruptcy. For instance the more stuff, like your car, houses, etc. that have debt that you personally include in your property statement agreement the more the risk that you ex spouse may be able to convince the bankruptcy court that your debts should be included in the bankruptcy.
Although items in a court approved property settlement are understood to be non-dischargeable, but the reality is there is no rule or law about the items that are related to your debt that may or may not be declared in a bankruptcy. The only way to have your debts not charged to you is to show that you have not ability to pay the debt and also to be able to take care of yourself or your children. Another good way is to show that taking care of yourself and your children is more important then anything that might happen to your ex spouse.
A few ways to find out if you are responsible for debt is if you were co-habituating with a person and you put your name on the debts. They will hold you responsible.
Lots of people while they are married combine their debts, so each one of them could pay the debt. Now of course if they are not able to pay the creditors the creditor will chase both of them. To protect yourself once your divorce filing is final is to get rid of all credit cards and joint accounts and get your name off bank accounts that you had with your ex spouse this will make sure that you are not be responsible for any more debt after your divorce is final.
In many cases one of the best ways to handle debt in a divorce is before any money is given to the individuals, all combined debt should be paid off. For example if neither one of the partners is going to be getting in the home where they lived prior to the divorce they could sell that home, pay off credit cards loans or other debts that they have combined. Their closing attorney can send checks to their lenders once the home is sold.
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