Debts & Divorce

How to deal with Debts

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Debt Resolution Mediation

Settle Your Debt Disputes With Family Mediation

Are you separated after a relationship breakdown and have debts then contact a local mediator who can help you both resolve the stress.

Having debts for anyone can be stressful but when you separate who pays for credit cards, loans, mortgages, cars etc?

Mediation can be perfect for having a conversation regarding your debts and working and agreeing on a plan of how they get paid.

Dealing with Debts? - Mediation for Separated Couples

Mediation typically entails resolving of conflicts between two or more parties done by a third party.

Before engaging with the courts, it is advisable for families to try out mediation to resolve their issues.

Usually, family mediation is used for custodial issues between separated couples.

However, family mediations can also be used to resolve other family issues such as poor communication between the couples, blended family issues, adoption, and other family-related conflicts.

Benefits of Family Mediation:

In separating spouses, debts need to be discussed and agreed in the same way as assets do.  These can be dealt with in various ways.  A mediator can help you consider all the options to allow you to make an informed decision that’s acceptable to both parties.

Financial obligations need to continue to be paid back till a court or settlement has actually formally resolved a financial disagreement.

The debt ‘belongs’ to the individual whose name it remains in, as a whole. So, if you have a credit card in your name, you are accountable for making the repayments, even if both of you have utilized it. For any type of form of loan or financial debt, this holds true.

There are some obvious debts which are in joint names such as mortgages but quite often overdraft and loans can also be in joint names and mediation can help when deciding how to deal with these now you are separating.

How Family Mediation Works
  • Family Mediations can be informal.
  • In such a case a friend or a family member could mediate between the couple and try to find common ground.  However taking on this role is not easy and can often lead to further complications.
  • This is where a qualified professional can be helpful to help resolve the issues affecting the couple.
  • The mediator encourages open communication during the session.
  • Here, each member gets to air their side of the matter and the mediator suggests possible solutions.
  • After the discussion of the issues and possible resolutions as attained, the mediator then drafts an agreement.
  • It requires both parties to review and consent to the agreement by signing the document,
Why mediate?

Family mediation is one of the best options to resolve conflicts between family members.

Due to its dynamics, it saves time and also resources.

Sometimes couples are beyond mediation and unfortunately, the court has to decide on their disagreements.

Before this escalation, Family Mediation could really be beneficial. Seeking mediation services beforehand is therefore very crucial for better results for both parties.

No matter how small the issues it’s only a matter of time for them to pile up into a huge mess.