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Why Hiring an Asset Protection Lawyer is Important for a Divorce

Lawyer explaining separation of assetsDivorce can place a great deal of stress that most people tend to forget the importance dealing with debt, whether or not it originated from you. However, there is a need to hire an asset protection lawyer or attorney to take care of your finances, especially if you are nearing retirement.

Otherwise called a gray divorce, elderly couples that plan to dissolve their marriage may put their retirement funds at risk.

Community Property States

The place where you live will be a major factor to determine how you and your spouse would settle debt payments. The community property states in the U.S. comprise Arizona, Idaho, California, Nevada, Louisiana, Washington, New Mexico, Texas, and Wisconsin.

The law in these states generally dictates that all accumulated debt during a couple’s marriage will fall under the responsibility of both parties, whether or not you were unaware of it. Couples who live elsewhere in the United States, which are called common law states, have to pay debt according to the beneficiary.

For instance, if your spouse has credit card debt solely under her name, then you no longer have to worry about it.

Legal Loopholes

Even if you live in a common law state, that does not mean lenders would simply avoid chasing after you for your spouse’s financial obligations. A divorce decree would not stop creditors from contacting you for missed or late payments.

In cases of collateral debt, the spouse who keeps the asset would normally have to pay for any outstanding balances. This becomes complicated when both parties signed up for the loan such as a mortgage since it would involve removing you or your spouse’s name from the contract.

Conclusion

Life during and after divorce can be a stressful experience, but you can try to make it easier by trying to keep your assets under your name. Consult an asset protection attorney to know how you can still start over after a failed marriage.