Debt and Credit in Oregon Divorce Mediation: Mediator Matthew House, J.D.
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
- Executory Contracts and Future Obligations: Unexpired leases or future commitments are examples.
- Bankruptcy: Chapter 7 or Chapter 13 Bankruptcy is typically a last-resort option.
Matthew designed a meticulous, five-pronged process for each mediation topic. Here's how it applies to debt division:
1. Disclose: You provide information.
2. Define: Matthew provides information.
3. Discuss: Matthew presents options holistically and discusses them with you.
4. Decide and Draft: After you have chosen how you want to proceed on each issue, Matthew will offer ways that those provisions can be drafted comprehensively to meet your needs effectively.
5. Dissolve and Divide: Once mediation is complete and you have your MSA, there are a few final steps.
1. Disclose: You provide information.
- Description: What does each type of debt mean?
- Divulging: What questions and concerns do you have?
- Debunking: Are there any common misconceptions or incorrect assumptions?
- Definitions: What terms do you need to know?
- Discovery: What information must or might you provide to Matthew?
- Dissipation: Are there concerns about either party concealing, exaggerating, or incurring debts?
- Delineation: Is it 100% a marital debt?
- Debt: Is the debt secured by an asset?
2. Define: Matthew provides information.
- Divisibility: Is it possible to divide the debt? (Note: "Possible" and "wise" are two different things. Matthew will provide his suggestions during mediation, and some debts cannot be divided at all.)
- Discretion: Does the desired outcome require another party or entity to approve?
- Dollars: Is the debt connected to a source of income for one party?
- Determination of Value: How will the value/amount be determined, and will the balance increase even if no new debt is incurred?
- Deference: Does an expert or other third-party resource need to be involved in valuing the debt?
- Dates: Are there dates that affect the valuation or marital delineation?
- Deadlines: Are there any deadlines that affect the disposition?
- Directives/Doctrine: What statutes, regulations, case law, or norms apply?
- Death: Would the death of either party have an effect on the other party in terms of outstanding debts?
- Divesting: Does either party have a bankruptcy planned or in progress that could affect the other party?
3. Discuss: Matthew presents options holistically and discusses them with you.
- Disposition: What are the best practices for assigning, dividing, or transferring the debt?
- Distribution: What equitable distribution points are important to consider?
- Diverse Options: What alternative dispositions are possible, even if not ideal?
- Dos: What pro tips should you know as you consider the debt?
- Don’ts: What pitfalls should you try to avoid as you consider the debt?
- Day-to-Day: What is the short-term impact of the proposed disposition?
- Down the Road: What is the long-term impact of the proposed disposition?
- Dividends and Development: Have you considered, if relevant, the potential payoff date in light of the current interest rate and the anticipated payments?
- Delays: What is the likely timeframe to execute the proposed outcome, if everything goes as planned?
4. Decide and Draft: After you have chosen how you want to proceed on each issue, Matthew will offer ways that those provisions can be drafted comprehensively to meet your needs effectively.
- Decisions: Your chosen disposition of the debt, after discussions in mediation
- Drafting: Considerations to bolster the stability of the disposition or avoid undesirable outcomes:
- Dependability: What insurance or other forms of security may be helpful to ensure that your intended result comes to pass?
- Durability: What is the framework and process for modification, if any?
- Death: Do any survivorship provisions or beneficiary designations need to be established or changed?
5. Dissolve and Divide: Once mediation is complete and you have your MSA, there are a few final steps.
- Documents, What specific forms or post-divorce processes, if any, are needed for the disposition of the debt?
- Deployment: How do you bring your agreed-upon outcome to fruition after the divorce has been finalized?