Canterbury Law Group Advises on Debt and Divorce

SCOTTSDALE, Ariz. - Nov. 25, 2015 - PRLog -- The Scottsdale divorce attorneys at Canterbury Law Group know that debt and divorce usually go hand-in-hand.  Even for marriages shorter in length, it is normal that you and your spouse would have some marital debts. The handling of shared debt during divorce can impact your credit long after the split is final. The legal team at Canterbury suggests talking to a trusted legal advisor to ensure your financial future.

Location Determines Your Debt Responsibility - In community property states like Arizona, both spouses may held be liable for debts incurred during the marriage, regardless of whose name is on the account. Other community property states include California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin. If you do live in a community property state, be sure that your divorce decree includes a provision that will indemnify you if your ex defaults on a separate account.

Both Parties are Liable for Joint Accounts - When two people apply for credit together, each is responsible for repaying the debt. This is true even if your divorce decree assigns the debt to your spouse. If an account goes into default due to non-payment, both spouses will be held liable since creditors are not bound by a divorce decree.  Again, proper indemnification language is critical for your lawyer to rely on here.

Moving Forward on Joint Debts - Consider closing joint accounts that were opened in both of your names, as well as removing your spouse as an authorized user on personal accounts.  Ideally, you should pay off as many joint debts as possible before the divorce is finalized to make negotiations easier.  In addition, some of these matters are better handled before you file for divorce, not after, because of a variety of issues including the preliminary injunction which typically applies to both spouses after one spouse commences the divorce proceeding.

About Canterbury Law Group

Canterbury Law Group, formerly Edwards & Cherney LLP, was founded in Phoenix, Arizona with dedication to providing legal counsel at the highest level possible. The law group at Canterbury consists of a unified team of litigators and paralegals with decades of experience. The team's personal case attention, experience and sophistication allows for innovative resolutions that generate positive results.   For more information, visit http://www.canterburylawgroup.com.