A common concern for spouses undergoing the divorce process is how debt distribution will pan out, as it can be frustrating to be left with debts that you are not responsible for. This is why couples initially try to agree on the terms of their divorce independently before everything is up for grabs in the equitable distribution process that the state of New York follows. But if you ultimately were unable to settle on a decision with your spouse, continue reading to learn how New York handles marital debt and how an experienced bankruptcy attorney in Rockland County at the Law Offices of Allen A. Kolber, Esq. can stand by your side throughout the negotiation process.
How does New York handle debt distribution during the divorce process?
Debts are treated similarly to assets during the divorce process in the state of New York. Like all other marital property, debts are distributed through equitable distribution, which means they will be divided in a fair manner as seen by the court. However, this does not necessarily mean that the debt will be divided equally. Instead, New York courts will take various factors into consideration when dividing the debts. Some of those factors include the following:
- The age of each spouse.
- The income of each spouse.
- The health of each spouse.
- The length of the marriage.
- The value of the marital assets.
- The amount of debt each spouse has.
- The earning capacity of each spouse.
- The standard of living that each spouse is accustomed to.
- The monetary and non-monetary contribution each spouse has made to the marriage.
Does all of my property have to undergo the debt distribution process?
Debt distribution is not the case across the board. Specifically, you may not have to incur your spouse’s debt due to equitable distribution if it is that of exempt property. Circumstances in which exempt property may be determined by New York courts are as follows:
- If someone gave the property to your spouse as a gift.
- If the property was inherited by your spouse.
- If there was a prenuptial agreement that excluded the property from the marital estate.
If you have any further questions regarding your debt distribution, do not hesitate in reaching out to a skilled Suffern New York bankruptcy attorney today.
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.
