Both divorce and bankruptcy are very stressful propositions for individuals and couples. Unfortunately, for many couples, financial issues are what bring them to divorce, and they have to face both divorce and the prospect of bankruptcy at the same time. That said, if you’re looking to get divorced but your spouse is the one who racked up most of the debt, or vice versa, you’re most likely wondering who will have to pay off that debt after you get divorced. Please continue reading and contact our competent Rockland County bankruptcy attorney to learn more about how courts determine which spouse has to pay off marital debt during a divorce. Here are some of the questions you may have:
How is marital debt divided in a divorce? Should I file for bankruptcy before or during a divorce?
When courts divide marital assets in a process known as equitable distribution, they will also divide debts and liabilities in a manner they determine fair and just. You should note that this does not mean 50/50 or equal–equitable is an entirely different matter. Some of the factors courts will consider when dividing marital assets/debts include the duration of your marriage, you and your spouse’s earning capabilities/yearly income, you and your spouse’s age and health, the value of your assets, the amount of debt you’re in, the standard of living established over the course of the marriage, and more.
Often, the spouse who didn’t technically rack up the debt will be responsible for paying off at least a portion of it. For example, if you and your spouse share a credit card, yet your spouse is the one who technically purchased various items, such as clothes, vehicles, or other expensive assets with the card and put you in debt, you will most likely still be responsible for a portion of that debt. If you have any further questions or believe you’ll need to file for bankruptcy to help you deal with this debt, please don’t hesitate to speak with our experienced legal team today. We are here to help.
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.