How to Minimize Financial Risk During Divorce
Divorce can create financial risks that linger long after the paperwork is signed. From joint credit cards to mortgages, it’s easy for debts to slip through the cracks or become a source of conflict. The good news is that with the right preparation, you can reduce those risks. By understanding what you owe, documenting everything clearly, and planning smart strategies for handling debt, you’ll protect yourself and move forward with greater confidence.
To reduce the chance of future financial harm in divorce:
1. Know what you owe
Request a copy of your credit report and gather all debt statements. Include:
- Credit cards
- Mortgages
- Auto loans
- Personal loans
- Student debt
- Medical bills
2. List debts clearly in your financial disclosure
Accuracy matters. Misreporting or omitting debts can delay the process and lead to disputes.
3. Negotiate smart debt strategies
If you’re keeping an asset tied to a loan (like a car or house), make sure you can afford the payments and build in deadlines for refinancing.
4. Use a tool like Onward
Onward can help you organize your debts, gather the right documentation, track joint vs. individual responsibilities, and ensure your financial disclosures are complete and court-ready.
Final Thoughts
Debt doesn’t disappear in divorce—it gets paid off or reassigned. The more you understand about how debt is handled in your state, the better prepared you’ll be to protect yourself and avoid future problems.
Clear documentation, fair negotiation, and the right tools can help you navigate divorce debt with more confidence and less chaos. If you’re unsure about how to handle a specific debt, talk to a divorce attorney or financial advisor who understands the laws in your state.
Please see our article: Debt in Divorce: What You Need to Know