When people consider the topic of divorce in their casual musings, they typically think about the complexities of asset division, the possibility of spousal support and how child custody is arranged. They may not think about the problem of marital debt that somehow has to be split between the two individuals. A Divorce Attorney in Torrance CA works to bring about a fair outcome for the client.
It is best for the couple to work out an arrangement on their own instead of bringing the matter to court. Each individual must have a separate Divorce Attorney in Torrance CA to prevent conflict of interest. The lawyers communicate for their clients if the spouses cannot discuss without fighting. Otherwise, the four persons may meet together to negotiate and come to an agreement. If this is not successful, sessions with an impartial mediator can be the next step.
Calculating Outstanding Debt
A calculation of all outstanding debt is part of the equation of the couple’s combined net worth. Shared debt can feel like a heavy chain connecting the two individuals who are trying to break free of each other. Instead of something they both want, such as their real estate and money in savings accounts, it is something neither wants to be unduly responsible for paying. The aspects of fairness and equitability must be considered.
Closing Joint Accounts
The most effective way to handle dividing payment obligations equally is to close all joint accounts. Each person opens new ones in his or her name, transferring the debt obligation to those accounts. Thus, credit card debt totaling about $12,000 can be split equally, with half the balance transferred to one spouse’s new card and the other half to the other spouse’s new card.
Dealing With the Mortgage
In regard to the outstanding mortgage balance, couples typically solve this problem in a few specific ways. One spouse might buy out the other and remain living in this family home. In contrast, the two might decide to sell the house, pay off the mortgage and split the profit evenly. All of these steps can be completed with the assistance of a law firm such as Shook & Associates Inc. Visit the website to learn more.