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Creditors are not parties to property division agreements

On Behalf of | Jan 20, 2017 | Property Division

Many Phoenix couples share joint bank accounts, credit cards, and other financial devices. They may both have their names on different instruments so that they may share the financial assets that they amass during their married years. However, a divorce can quickly end partners’ willingness to comingle their monetary property.

When a marriage ends in divorce it is important that the parties act on the property division decisions they make during the dissolution of their unions. For example, a divorcing couple may decide that one of the parties will keep certain credit cards in his name; if, though, the other party does not remove her name from the spending device then she may also be held liable for any amounts due on the charge accounts.

Even if the parties agree through either a property division settlement or order that they will each be responsible for particular shared financial accounts or loans the other party may still be pursued when those financial tools go into the red. Unlike the actual parties to the divorce, creditors and account administrators are not bound by the determinations of divorce-related decries. Therefore, parties who no longer want to be named on joint credit cards and accounts should have their identities removed from them to avoid future liability.

This seemingly specific topic is intended to highlight just one of the many ways that couples may face challenges during and after their property division negotiations. Though no legal representative can ever guarantee a completely smooth property settlement process, attorneys who include family law within their areas of practice can guide their clients to make good decisions about how to protect the wealth they retain after their divorces.