If you are going through a divorce, you may be curious about what will happen to your debts as a couple. This is a common concern for many spouses going through divorce, due to the fact that they do not want to be left with debts that the other party is responsible for. Continue readings to learn about martial debts and what happens to debt in a divorce in New Jersey. It is important to understand what the courts will consider when dividing the debt between you and your ex-spouse. Reach out to our experienced bankruptcy attorney to discuss how our firm can assist you. We are prepared to handle your legal matters with your best interest in mind.
What happens to debt in a divorce?
Debts are treated very similarly to assets during the divorce process. Like all other marital property, debts are divided through equitable distribution. Equitable distribution is a process in which assets and debts will be divided in a fair manner, as seen by the court. This does not necessarily mean that the debt will be divided equally. Instead, the court will take various factors into consideration when dividing the assets and debts. Some of those factors include the following:
- The age of each spouse
- The income of each party
- The health of each spouse
- The length of the marriage
- The value of your marital assets
- The amount of debt the couple has
- The earning capacity of the couple
- The standard of living that the couple is accustomed to
- The monetary and non-monetary contribution each party has made to the marriage
The New York courts will consider these factors and more when it comes to dividing the debt of two spouses. In order to achieve the best possible outcome in this process, it is highly recommended that you retain the services of an experienced New York bankruptcy attorney who will walk you through each step of this process. Do not hesitate to reach out to our firm today. We may be able to shake some of your debt to prevent you from having to pay these debts off for years down the road. To learn more about our services and how we can assist your legal process, contact our firm today to schedule an initial consultation.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.