While your assets will be distributed in your divorce, so will your debts. With this, you may be concerned with possibly being left with debts that you are not personally responsible for. But rest assured, there are tactics to avoid this. For more information on how your debts will be distributed in your New York divorce, read on to discover how a seasoned bankruptcy attorney in Rockland County of the Law Offices of Allen A. Kolber, Esq. can help ensure this is executed in a fair and just manner.
How does New York’s equitable distribution impact how debts will be distributed in my divorce?
First, it is recommended that you and your spouse try to agree on how debts will be distributed in your divorce before everything is up for grabs in New York’s equitable distribution process. But ultimately, if you are unable to settle on a decision, then the New York courts will make decisions regarding your marital debts on your behalf.
In the equitable distribution process, your marital debts will be divided in a fair and just manner as seen by the New York court. However, “fair and just” does not necessarily mean a 50/50 split. Instead, the New York court will take various factors into consideration when dividing these debts. Some of those factors include, but are not limited to, the following:
- The age of both you and your spouse.
- The income and/or earning capacities of both you and your spouse.
- The physical and mental health of both you and your spouse.
- The length of your and your spouse’s marriage.
- The value of your and your spouse’s marital assets.
- The amount of debt both you and your spouse have.
- The standard of living that both you and your spouse have grown accustomed to.
- The monetary and non-monetary contribution both you and your spouse have made during your marriage.
Are there exceptions for which debt is distributed?
As mentioned above, there are ways to avoid incurring your spouse’s debt after your divorce. That is, you may not have to take on debt if it is that of exempt property. Examples of what New York recognizes as exempt property include, but are not limited to, the following:
- If the property was given to your spouse as a gift.
- If the property was inherited by your spouse.
- If the property was excluded from the marital estate in your prenuptial agreement.
If you require assistance with avoiding your spouse’s debt, you must employ a competent Rockland County bankruptcy attorney as soon as you can.
Contact our experienced New York firm
If you require the services of an experienced Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.