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Family Law Issues in Tough Economic Times: Debts

More and more people have substantial credit card debts, home equity lines, and/or second mortgages on a home. I see many divorces where the assets are less than the liabilities. This is a situation where there may have to be some creative financing. There may be the necessity for exploring bankruptcy. It may be a situation where some of the credit card companies will negotiate a reduction in debts if there is money to pay them off, assuming someone’s credit has already been hurt by the economy. These are all situations that are happening more and more frequently in our current economic mess. 

Last, but not least, bear in mind that as you go through a divorce, creativity is more and more important now than it may have been three or four years ago when people had positive equities in their homes, substantial value in their IRAs, and 401Ks. They also had a belief in a secure job and economic future. Things are different now, and every case must be handled very delicately because of the horrible recession that we are going through, which quite frankly, is worse than any time since the Great Depression over 70 years ago.