Divorce is a judicial declaration dissolving a marriage contract in whole or in part. Divorce really releases the husband and wife from all matrimonial obligations. But, there are certain obligations that were taken during marriage that still need to be accounted for after divorce, marital liabilities.
The term marital liabilities refer to whatever a spouse is liable for after the dissolution of the marital contract. Life after divorce isn’t simple. As a divorcee, you fall under a lot of financial stain. On top of all the spiraling expenses that are eating through your expenses, there are bad credit ratings scaring the credit reports. The fees of the divorce attorney
fall under the responsibility of each spouce and are marital liabilities.
You might have a financially sound divorce settlement but that doesn’t mean that you have protected your credit ratings. It is quite simple to let your credit rating be scared during the divorce process. Many of us simply forget the importance of maintaining a good credit rating until we need to buy a house, a car or get a loan for college education. Many divorcees find out the importance of credit ratings the hard way. The best thing to do is to check up on your credit rating from the 3 credit reporting companies; Equifax, Experian, Trans Union. According to the State you reside in, you are entitled to one free viewing every year.
Income Tax Liability
Divorce can also affect your income taxes. Internal Revenue Service, itself is a creditor and can pursue collection of income taxes against either or both spouses. The court decree can order your spouse to pay all the income taxes due. The problem is that the Internal Revenue Service isn’t restricted by State laws
as it is regulated by the Federal Government. It is never good to have income tax liability.