Divorce can come with financial surprises that hurt your future situation. Finding hidden debt during divorce might create problems you didn’t expect.
North Carolina courts split property and debts based on what they think is fair for both spouses. If hidden debt comes to surface, you need to know how to protect yourself after divorce.
How North Carolina handles debt division
When you face divorce, you should know North Carolina treats debt much like assets when dividing things up. Keep these elements in mind:
- Marital debt: Debts you both took on during marriage usually get split between you, even if only one name is on the account.
- Separate debt: Money owed from before marriage or after separation usually stays with the person who created it.
- Equitable distribution: Courts try to be fair, not equal, by looking at things like income differences and how long you were married.
- Timing matters: Debt that comes after you separate typically belongs only to the person who took it on.
You need to watch for unusual financial activities that might warn you about problems.
Types of hidden debt to watch for
You might find these kinds of secret debts during your divorce:
- Secret credit cards
- Loans from family members
- Business debts
- Tax problems
- Gambling debts
- Shopping addiction accounts
- Fake expenses
- Payday loans
You must take action to protect your money during divorce.
Protecting yourself from hidden debt
These steps can help guard your financial future when you think your spouse hides debts:
- Credit reports: Get reports from all three main credit bureaus to find accounts you didn’t know about.
- Bank statement review: Look through statements for strange transfers or payments to places you don’t recognize.
- Professional help: Talk to financial experts who can track money movements and find hidden debts.
- Legal discovery: Use the legal process to make your spouse show all financial information.
Hidden debt can ruin your finances after divorce if you ignore it. Seeking out the help of divorce lawyers and financial professionals can help you avoid debt that should not be yours.