Divorce Liability Insurance
In the context of divorce, liability normally refers to debt – particularly what a couple owes concerning the terms and conditions of going their separate ways.
Married couples build and accumulate assets and liabilities: what they own, and what they owe. Liabilities can come in the forms of balances on mortgages, home equity loans, student loans, car loans, unpaid utilities, property taxes, and lines of credit. All of these debts must be satisfied, and the terms and conditions of this satisfaction are spelled out in the marital separation agreement.
Any agreement a couple makes must conform to the laws of the jurisdiction in which they live. Generally speaking, couples are responsible for all debts they contracted together as a married couple, and prior to the date of separation because the husband and wife have joint and several liability. After the date of separation, the new debts and liabilities of a divorcing couple belong to each of them individually.
A divorcing couple is liable for the debts they incurred when married. Divorce liability can come to the rescue. Call us today to find out how.