For a couple who makes the tough choice to end their marriage in Tennessee, the thought of splitting up their assets can be challenging. While choosing what assets to give up is a hard thing to do, spouses should also pay close attention to the fact that they must split up their debts as well. In some cases, how debts are assigned may factor into what assets are kept by either spouse or even sold.
When it comes to credit card debt, CreditCards.com recommends that as soon as the decision to separate or file for divorce has been made, each person should keep very clear records about all income and expenditures. The more detailed these records can be, the better. It is also wise to close any joint accounts as soon as possible to avoid one spouse racking up more debt that the other person may be at risk for owing on. If closing an account is not possible, people should check into at least putting a freeze on the account so no further charges can be made to it.
Money Management International recommends that divorcing couples try to leave their divorce with as litle debt as possible. This means they should work hard to find ways to pay off any joint debt before they get divorced. This may mean utilizing a home equity line or proceeds from the sale of a home to pay off other debts.
If debt does remain and is assigned to individual spouses, each person should transfer that debt into a new account in their name only.