Life Happens: Divorce
Going through a divorce or separation can be one of life's toughest challenges. It's a time filled with emotional ups and downs, and it's common to feel overwhelmed and uncertain about the future. You may have even experienced feelings of betrayal, especially when money problems play a role.
At MNP, we understand. Financial stress can put a strain on any relationship, and sometimes, it can even be the breaking point. But amidst the pain and uncertainty, there's hope for better days ahead.
We're here to offer you a fresh start, both emotionally and financially. Our team understands the complex mix of emotions you're going through, and we're dedicated to helping you navigate this difficult time with compassion and support.
"Divorce is a journey no one plans to take and dealing with joint family debt is sometimes overlooked; however, this can be the fresh start for your new beginning. As you navigate this difficult time, remember that you're not alone. Our team is here to guide you through financial processes and help you rebuild a stronger, more secure future."
- John Haralovich, MNP Licensed Insolvency Trustee
Frequently Asked Questions
Individual debt happens when only one person takes on the debt, like getting a loan or a credit card in their name only. It's their responsibility to pay it back. This can include debts they had before getting married or during the marriage.
Joint debt occurs when both partners agree to share the debt, such as co-signing on a mortgage or joint credit card. With joint debt, both partners are equally responsible for paying it off, regardless of any separation agreements. Understanding this difference is important to know who is liable for what after a divorce.
In most cases, each person must cover their own legal fees during a divorce. In some circumstances, one spouse is ordered to contribute to the other's legal expenses. This often depends on factors such as income disparity, financial need, and the complexity of the case.
Some couples may choose to negotiate the division of legal fees as part of their divorce settlement agreement. It's important to discuss potential legal fees with your lawyer.
Marital debt can stem from various sources and situations within a relationship. Common causes include:
- Spousal overspending
- Financial disagreements
- Unexpected expenses (e.g. medical bills, home repairs)
- Job loss
- Failure to communicate effectively about finances
A lack of communication about financial goals and responsibilities can also result in misunderstandings and mismanagement of joint finances. Understanding the underlying causes of debt is crucial for addressing it during and after a divorce.
If you're struggling to pay your debts while going through a divorce, seeking professional guidance from a federal government accredited and regulated Licensed Insolvency Trustee, such as MNP Ltd., is a good option.
We help individuals navigate financial challenges, including debt management, during significant life changes like divorce. Our team can assess your situation and provide personalized advice on debt relief options, such as debt consolidation, negotiation with creditors, or bankruptcy if necessary.
To get started, you can use the MNP Debt Calculator to understand your financial situation better and explore potential solutions. Don't worry; we're here to help you find the best way forward.
Have more questions?
Visit our FAQ page to access many other answers to your most pressing questions.
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