Preparation - Preparing Your Finances - Debts

DEBTS

There are numerous debt issues involved in dissolution, ranging from payment on the mortgage for the family home, to credit card debt. Not only do you need to consider the monthly payments that are due in your expense listing, but you need to ascertain the amount necessary to pay the debt off in full, so that the debts can be allocated between you and your spouse in an equitable fashion. Examples of debts are: mortgages, vehicle loans, loans against 401(k) or other retirement plans, lines of credit, consumer credit cards, lawsuits or judgments, outstanding taxes (which may include penalties and interest), school loans, stock margin accounts, and personal loans from family members or friends.

This information is also crucial in your completion of an accurate Affidavit with Respect to Financial Affairs. You may need to update your documentation in order to be as accurate as possible. For example, you may need to obtain recent credit card statements, contact your mortgage holder, or other creditors. You should make sure that up-to-date figures are included, as those figures will be important in determining an equitable division in your case.

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