One of the challenges of divorces involves the way couples divide marital debts. If this issue is not handled properly and stated correctly in the divorce decree, it can lead to problems. This can lead to one spouse being held legally responsible for the other spouse's debts, but this can often be prevented through the use of indemnity clauses in the divorce decree. Here are two things to understand about indemnity clauses.
What Are They?
Indemnity clauses, also referred to as indemnification clauses, are commonly used in divorce decrees when couples have debts in both of their names. If possible, divorce lawyers may suggest splitting up the debts and requiring each spouse to place their debts in their own names; however, this is not always possible. When this is not possible, lawyers may recommend using indemnity clauses.
When a divorce decree includes an indemnity clause, it states which spouse is responsible for each debt. This clause will offer you protection against the debts your spouse is responsible for, which can help you protect your credit and your money.
These clauses are necessary because creditors have the right to go after both spouses when debts are in both names, regardless of what a couple's divorce decree states.
How Can You Enforce Them?
If your ex does not pay a debt he or she is supposed to pay, the indemnity clause can help you in several ways. The first way is by giving you the right to take your ex to court over the money. If you are trying to protect your credit and end up paying a debt your ex was supposed to pay, you can take him or her to court to ask for this money back.
In addition, having this clause added to your divorce decree will give you the right to dispute your spouse's debts if they appear on your credit report. Without this clause, you would not have the legal right to do this.
If your ex fails to pay the bills he or she is responsible for, it can put you in a really bad financial situation. This may not be something you think of during your divorce, but your divorce lawyer may suggest it to you.
If you would like to learn more about protecting your credit and your money, find a good divorce lawyer in your area to handle your divorce proceedings for you.