And the bottom line is this: In most cases, once you are joined in marriage, the debt of your partner becomes shared debt, not just in the moral sense, but legally, as well. That won’t change if you prepare for divorce. In marriage, more than souls are intertwined – finances are part of the mix.
Children and Debt
Although it’s not necessarily your responsibility to fix your kids’ financial messes, you realize the impact that debt can have on their future. Too much of it can lower their credit scores, limit their ability to get a home mortgage or auto loan, and may even impact their employment prospects. Writing a check and clearing your children’s debts can certainly lift a heavy burden, but it may not be the best move. There are both pros and cons of taking this action, so it is best to take your time, weigh both options, and come to a decision that you feel will be best for you and your child’s unique situation.
Many young adults get their first credit card while in college. This provides an opportunity for them to establish a credit history at an early age. However, the responsibility of managing a credit card can be too much for some students. Between poor budgeting and overspending, some end up with maxed out accounts. Paying off such a debt can give your children a fresh start. However, along with financial help, they need to be educated on the right and wrong ways to manage credit and money – or else they may find themselves in the same situation all over again.