A divorce settlement will always include addressing all outstanding community liabilities and debt. These include anything from mortgages, car loans, credit card debts, and other consumer loans. Parties involved must also consider addressing any personal guarantees made with regard to lines of credit and business debt. As part of the mediation process, we will work through the various possible debt issues to come to a solution that works for all involved.
What debts do the parties have?
What business debts or mortgage debts do the parties have
Who will be responsible for debt repayment after the divorce?
What timeframe will be there be to pay off community debts after divorce?
What if one party wants to file for bankruptcy and the other does not?
Part of the process we have in A Fair Way Mediation is an assessment of the different kinds of debt built up during the course of the marriage. Some debts are to be considered as “Community.” Others are “Sole and Separate.” A repayment plan needs to be devised and set forth in the Marital Settlement Agreement which is uniquely prepared for each couple.