An Orange County family attorney can explain how secured debts and liabilities can influence your divorce proceeding during and after it is completed.
Divorce Doesn’t Eliminate Debt Responsibility
Couples often accumulate debt in exchange for assets. When there is a divorce, it is possible that one of the spouses will be responsible for the asset and debt. In certain instances, the Orange County family lawyer is not able to protect the spouse giving up the asset from also being responsible for it and joint liability will remain.
Lenders May Not Agree to Refinancing
Even if the Orange County family attorney requests it, lenders are not required to agree to the division of assets and liabilities, so both people might still be listed as debtors. Refinancing is a possibility due to the person’s financial situation, but divorce can be difficult on finances for both parties, and refinancing might not be an option. The person who doesn’t have the asset will still be liable due to what is known as contingent liability, and they can still be held responsible if the holder of the asset doesn’t pay the debt.
An Orange County Family Attorney Can Provide Options
In certain instances, the couple might realize that they can’t keep up with the payments and may plan for a possible default. Another option is to ensure that the spouse with the contingent liability is compensated for the risks.
Contact An Experienced Orange County Family Attorney
If you are getting a divorce and have questions regarding secured debts and liabilities, an Orange County family lawyer can help. Contact Bethanie Fanti at 714-505-3108 to discuss your case today.