Preparing for Divorce in Mississippi: Step 3B – What does your family owe?
Step 3B - Determine what your family owes
We have discussed the first step, what your family owns, in getting a complete picture of your family finances. Now we turn to the next step which is what does your family owe.
You will need to determine all of the debts of the marriage without regard to who incurred the debt. While who incurred the debt may be important at a later date, your initial task is to get a complete picture of the debts owed by your family.
Again, documentation is important. If you pay the bills in your family, you should have a good idea of what you owe. If not, you need to start looking at your bills. Make copies of the bills over a two-month period to get an idea of your debts.
Another great way to understand your debts is to get a copy of your credit report. If your spouse took out credit in your name without your knowledge, your credit report should show it. You would be surprised the number of times I’ve heard a client tell me they had no idea their spouse took out credit in their name. There are three credit bureaus—Experian, Equifax, and TransUntion. You are entitled to a free credit report from each agency once every 12 months. You can request a free copy at www.annualcreditreport.com.
After you determine who you owe, the next step is to get copies of the statements for those accounts to determine what is currently owed. It is best to have at least 2 years of statements from financial institutions, including credit card companies, to see what has been spent and what is owed. The more information, the better.
