Debt and Credit in Portland Divorce Mediation
Debt Division in an Oregon Divorce
Debt Division is a component of any complete divorce mediation process. It must be done with care and precision. The main categories of debts and debt-related topics addressed in Oregon divorce mediation include, but are not limited to:
- Unsecured Debt: Credit cards, personal loans, medical debt, etc.
- Secured Debt: Mortgage, Home Equity Line of Credit, vehicle loan, etc.
- Tax Debt: Federal, state, or local tax debt
Post-Divorce Credit
In a divorce, each spouse's respective individual debts and credit score are important. Mediator Matthew House's goals for divorce mediation clients concerning credit include:
- Ensuring that each spouse has access to at least one major credit card in her or his individual name.
- Clearly documenting the responsibility for all credit card debt.
- Confirming that there are no undiscovered accounts or unintentional financial connections that still need to be severed.
Bankruptcy: Last-Resort Debt Relief
- Bankruptcy should always be considered a last resort option for debt relief.
- Bankruptcy can release you from many times of unexpired contacts or leases.
- If it is possible that you will need to file for bankruptcy during or after your divorce process, Matthew will review your options, look for alternatives, and explain the ramifications for each of you.
- If one spouse files for bankruptcy, it may affect the other spouse's credit or the other spouse's responsibility for repaying any debts that might have been joint obligations at the time they were created.
- If you are released from liability but you have entered into the contract with your spouse, your spouse may be severally liable.
- Matthew will help you navigate those details and include indemnity clauses in your Marital Settlement Agreement.
Next Steps
Schedule a 90-minute in-person or Zoom introduction (first hour is always FREE)
or a 30-minute free "meet-and-greet" as soon as you're ready to begin mediation.
or a 30-minute free "meet-and-greet" as soon as you're ready to begin mediation.