Divorce Recovery Time Debt Facts

A divorce can cause emotional and financial strain for both parties. Assets and debts accumulated during the marriage can negatively impact the financial situation of the parties once they are single. Debt recovery after a divorce can take a considerable amount of time and planning.

Types of Debt

• Married couples usually incur a significant amount of debt. In most cases, couples file for credit cards, mortgages or lines of credit jointly to improve their chances of credit approval. When a marriage ends, both parties are still responsible for repaying the debts. According to Experian, "a divorce decree does not separate responsibility with the debts from your lenders." If one party fails to fulfill their credit obligations, both parties may suffer the effects of damaged credit for long after the divorce is final.

Time Frame

• Experian indicates that debts related to public records, judgments and negative creditor information can remain on personal credit reports for seven years. Bankruptcies remain for ten years and tax liens for fifteen years. If you were a signer on an account with your ex-spouse or held joint accounts that are currently or were previously in default, recovery from these items can take a number of years.

Prevention

• For some, the road to post-divorce debt recovery may last a long time. A divorce alone does not release debt repayment responsibilities. Each party must take the necessary steps to separate jointly held accounts and pay off marital debt obligations before they become a problem. If a divorce is inevitable, becoming solvent on debt payments is the best way to avoid a lengthy recovery once the divorce is final.