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One of the concerns that many couples have while separating is on debts. In most cases, when couples incur debts together, they do not consider situations whereby they may face problems that warrant their separation. National Mediation Services South-West offers advice on how to manage separation and debt.
The first thing you should do before speaking to the South-West Mediation Team is to get all the information regarding the debts on paper. This is the perfect way for you to get a clear view of the financial situation. By seeking services from highly qualified and experienced family mediation service, you will be instructed on all what you should include in your paper about the debts you have. In addition, you also get the right course of action you need to take.
In case you have some fear that your spouse may incur more debts which would make things worse, it advisable to take the right actions to prevent this. In a normal situation, you should first negotiate matters with your spouse.
However, the most important thing you should do is to ensure that the financial position of your family is protected. It is good to note that both of you are liable for debts if you are signatories. It is advisable you inform your spouse on the steps you have taken and the reasons why you have decided to do so. Do this as fast as possible to avoid any kind of shock and resentment later on.
If you hold joint accounts, you need to request the bank to freeze the accounts until you reach a financial settlement. However, note that if the accounts are frozen both of you will not be able to make any withdrawals.
For any withdrawal to be done you have to ask the bank for joint signatories to withdraw. You can also decide to close the joint accounts and make an arrangement for a specific sum of money to be paid to your partner personal account. This is the better option if you are the one who earns more money and there are children.
In case you hold joint store or credit cards, you need to take some action. If you are to cancel such joint cards completely, all money you owe would be repaid or cancel the authority your spouse has to use of the cards if you are the main holder. You can also opt to reduce the spending limit.
If you have a mortgage or rent that you feel you may not be able to continue paying, you need to contact your landlord or lender. Make sure that you put down any agreement you make in writing for future references and file the documents properly.
You should not be afraid to discuss with your landlord or lender so that you can have some temporary arrangements if you are unable to make the payments. This will ensure that they do not take any legal action against you for such non-payments.
Joint debts remain the responsibility of both parties unless otherwise specified in a legal agreement. Creditors can still pursue either party for the full amount owed, regardless of any internal agreement between the separating individuals.
Removing your name from joint debts typically requires the consent of the creditor. You may need to work with the creditor to refinance the debt in the other person’s name or find an alternative arrangement. A legal agreement or court order can also stipulate the responsibility for specific debts.
Navigating debt during a separation requires careful consideration and understanding of legal implications. Joint debts persist as shared responsibilities unless specified otherwise in a legal agreement. Removing one’s name from joint debts demands cooperation with creditors and may involve refinancing or alternative arrangements. Bankruptcy declared by an ex-partner introduces complexities, potentially leaving one party solely responsible for joint debts. Seeking legal guidance and considering mediation services, such as those offered by the National Family Mediation Service South-West, can facilitate fair and amicable resolutions. Mediation provides a platform for constructive discussions, aiding couples in addressing financial concerns and formulating agreements that reflect their unique circumstances.
Looking to resolve Family Issues? Speak to National Family Mediation Services South-West