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Debt Division
Several things to consider in debt division: A. No effect on third party creditors The Court can order a division of debts in any manner that the Court deems appropriate. It is important to keep in mind that a Court order effective between a husband and wife is NOT necessarily effective against a third-party creditor. (In other words, a credit card company can go after you or your former spouse regardless of who was ordered to pay the debts.) B. Income Taxes The Court can also order either spouse to pay the parties' income taxes thorough the date of divorce. This, also, is not effective as against the IRS. (The IRS can, in other words, come after either party for the unpaid income taxes). ©2006 Higdon, Hardy & Zuflacht
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