Responsibility for Liabilities

The payoff and closing of joint liabilities after the finalization of divorce is not always a straightforward process. There may be unexpected changes in the balances of liability accounts, undiscovered charges, or difficulties encountered when paying off accounts.

Mediation is effective in assisting divorced people to reach agreement regarding the following:

• Payoff of joint credit cards
• Payoff of joint loans acquired during the marriage, including
  • Car loans
  • Promissory notes
  • Bank loans
  • Informal personal loans (such as from family members)
• Responsibility for balances accrued in an equity line of credit on jointly owned property
• Responsibility for child expenses (see Financial Disputes)
• Consequences of a loan default or bankruptcy of one or both spouses