Two words that no one ever wants to deal with, yet often go hand-in-hand are debt and divorce. Both can have a devastating effect on a person’s personal and financial health. Not surprisingly, debt can often play a big role in the failure of a marital relationship. In fact, it is credited as one of the top three reasons given by couples who have divorced. Trying to deal with the end of a committed relationship and handle the separation of both assets and debts can be a trying period for both partners. Here we will discuss a few tips to better handle debt and divorce.

• Understand the law- There are many misconceptions about how debt is handled in a divorce. People who fail to educate themselves on both their rights and obligations are bound to face a more difficult future than those who invest the time to learn who is responsible for what when the marriage ends. The laws may vary from state to state, therefore it is your responsibility to learn how the law is applied in the state in which you reside.

• Sever joint accounts- When going through a divorce you want to avoid leaving the union with shared debts. You and your partner can either jointly pay off the debts leaving no debt to be shared or divide and transfer the amount the other person is responsible for to an account in their name. Regardless of how you choose to handle your debt it must be addressed or somewhere down the road one person runs the risk of being responsible for all debt held on a joint account.

• Emotions can be costly- In many situations one or both parties are so emotionally distraught that they are unable to think clearly. A divorce is an emotionally charged event and with good reason, it signifies the end of a relationship that was meant to last a lifetime. If you are unable to discuss and handle debt issues with your partner, you should consider help from a financial planner or mediator to guide both of you through the process. Not dealing with debt or worse, racking up new charges out of anger or resentment will eventually harm both parties in one way or another.

• Keep accurate records- While going through the divorce process, keep accurate records on what debt you incur or pay off in the event you should need proof of these transactions at a later date.

• Protect your credit- Moving forward as a newly single person, it is important to protect your credit at all costs. If your credit is poor you will no longer be able to rely on a partner who has better credit for future financing. You now have only your own income to rely on therefore avoiding debt all together or paying off any remaining debt should be a top priority. If you have debt that you feel is not your responsibility, yet bill collectors keep calling, take action to resolve the situation versus simply ignoring the requests for payment.

Moving on after a divorce is difficult enough in most situations. By addressing any joint debt that was incurred during the marriage before your divorce is final, you are one step closer to a future without painful financial reminders of the past.