Going through a divorce can be one of the most challenging experiences of your life. Along with the emotional and psychological toll, it can also have financial implications that can be overwhelming. One aspect of the divorce process that can be especially daunting is debt collection. If you are divorcing in South Dakota, it’s essential to be aware of your rights and remedies when it comes to debt collection. In this article, we will explore the various issues surrounding debt collection during divorce, including your rights, remedies, and responsibilities.
Division Of Marital Debts In South Dakota
When a couple decides to divorce, one of the significant issues to be resolved is the division of property and debts. In South Dakota, marital debts are considered to be any debts that were acquired during the marriage. Examples of marital debts include credit card debt, loans, mortgages, and medical bills. The general rule is that the court will divide marital debts equitably among the spouses. It’s important to note that equitable division doesn’t always mean an equal split; rather, it means dividing the debt based on what is fair and reasonable given the circumstances of the case.
Debt Collection During Divorce
If you and your spouse have joint debts, you may be concerned about what will happen to those debts during the divorce process. Creditors are not bound by divorce decrees, so they can still pursue you for payment even if the debt was assigned to your spouse in the divorce. That means if your spouse fails to pay a joint debt, the creditor can come after you for the entire amount owed. You can try to protect yourself by notifying your creditors in writing that you’re getting a divorce and that any joint accounts should be closed. However, ultimately, it is your responsibility to ensure that joint debts are paid, even if your spouse was assigned the debt in the divorce decree.
Remedy For Joint Debts
If you’re struggling to manage joint debts during the divorce process, there are several remedies available. One is to request that the court assign responsibility for payment of the debt to one spouse or the other. This means that the court would order one spouse to pay the entire debt, relieving the other spouse of any obligation to pay. Another option is to agree to pay off the joint debts as part of the divorce settlement. You can negotiate a specific amount that each spouse will pay, or you can agree to make payments until the debt is paid off in full.
Debt Collection After Divorce
If your former spouse fails to pay a debt assigned to them in the divorce decree, you may be wondering what your options are. In South Dakota, you have the right to take legal action against your former spouse to enforce the divorce decree. For example, you can file a motion for contempt of court, which would compel your ex-spouse to comply with the terms of the divorce decree, including paying the assigned debt. If your ex-spouse still fails to pay, you can request that the court garnish their wages or levy their bank account to satisfy the debt.
Protecting Your Credit During Divorce
In addition to dealing with joint debts during the divorce process, it’s essential to protect your credit. If your ex-spouse fails to pay a debt assigned to them in the divorce, it can have a negative impact on your credit score. Even if you’re not legally responsible for the debt, it can still show up on your credit report. To protect your credit, make sure to close all joint accounts, including credit cards, loans, and bank accounts. Also, keep a close eye on your credit report to ensure that your ex-spouse doesn’t open any new accounts in your name.
Conclusion
Going through a divorce is never easy, and it can be especially challenging when it comes to debt collection. If you’re divorcing in South Dakota, it’s crucial to know your rights and remedies when it comes to joint debts. Remember that creditors are not bound by divorce decrees, so it’s essential to take proactive steps to protect yourself, including closing joint accounts and ensuring that joint debts are paid. By understanding your legal rights and working with an experienced attorney, you can navigate the divorce process with confidence and emerge on the other side with your financial stability intact.