A marital split is hard enough without having to worry about handling debts after a divorce. But if debts aren't properly managed, without a divorce strategy in place, the situation can snowball into a major financial disaster for both spouses involved in the divorce. This article will give you some debt management strategies so as to avoid financial disaster following a marital split.

For starters, all joint bank or credit card accounts should be closed following a divorce. It's advisable to ask creditors to switch any joint accounts into individual ones for each spouse. A creditor can't legally close a joint account simply because of a change in marital status, but can do so at the request of either spouse. In the case of a debt such as a mortgage or home equity loan, following a divorce, a lender will likely require refinancing to remove one of the spouses from the debt obligation.

These other tips can also help with debt management following divorce:

1. Make a complete list of all financial debts, both joint and separate. List the names of the creditors of the debt, the balance owed on the debt and all relevant account numbers. Keep in mind that any separate debts that were created before the marriage will likely stay with the spouse who incurred them. Try to divide all debts into two columns-one for each spouse. This is an effective debt management strategy to make things easier for both you and your spouse during the divorce process.

2. Prioritize debt repayment. Taxes should always be paid, because the fines and penalties can snowball into a financial disaster. All utility, mortgage or rent bills should also be paid, especially if they are for residences that are currently being used by either spouse.

3. Calculate total combined income. The higher-income spouse can pay more of the debt.
Just as divorce courts divide up joint marital assets, they also divvy up joint debts. Interestingly, there are few statutory guidelines for debt division following a divorce, but generally, if debts are not classified as belonging to a particular spouse, then the parties must repay any debts incurred during the marriage.

Some debts, however, are not shared and are the sole responsibility of the spouse who incurred them. For example, large gambling debts, unreasonable investment and excessive living expenses incurred by one spouse, are not considered jointly held debts. The spouse who incurred them will be liable.

By being organized and having an effective divorce strategy, debt management following a divorce doesn't have to be a headache for either spouse.