If you are going through a divorce it is important to understand how courts handle the division of joint debts. Learn more about your rights and legal responsibilities by reaching out to a skillful Sparta property distribution attorney today.
What Are Joint Debts?
Joint debts are any financial obligations that two or more individuals bear responsibility for. In a marriage, joint debts refer to any financial liabilities where both spouses have their names listed on the account or that they are both accountable for paying back.
These debts can include credit card debt, mortgages, personal loans, car loans, and any other liabilities that are shared or benefit both parties. When a couple takes out joint debt they are both responsible for repaying the entirety of the amount, regardless of whose idea it was to incur the debt or how it is being used.
Is New Jersey an Equitable Distribution State?
Yes, New Jersey is an equitable distribution state. This means that when two individuals are getting divorced, the court will divide assets based on what is fair and just, not necessarily just a 50/50 split.
The goal of equitable distribution is to ensure that both spouses receive a fair share of the marital property and that neither party is left destitute or at a significant financial disadvantage due to the divorce. When determining what division of property is equitable, courts will consider various factors related to the relationship and the personal and financial situation of both parties.
Factors that are often considered can include the following.
- The length of the marriage
- The income of each spouse
- The earning capacity of each spouse
- The child custody arrangement
- The standard of living the family is accustomed to
- The age of each spouse
- The mental and physical condition of each spouse
The above factors and more are considered to ensure a fair and equitable split of property. This is different from community property states where assets are generally split equally between spouses, regardless of personal circumstances.
How Do I Handle Joint Debts in a Divorce?
In a New Jersey divorce, joint debts are handled the same way that joint assets are handled: through equitable distribution. In the same way that assets are divided to ensure each spouse receives a fair share of the properties, liabilities are split up based on an equitable distribution.
When dividing debts, the court will consider a variety of factors similar to those that are taken into account when deciding which spouse should receive which assets. The personal and financial situation of each spouse is evaluated to ensure that the debts are falling to the individual who incurred them, benefited the most from them, or has the ability to pay them.
For example, if one spouse was awarded a large asset, like the family home, they may be given a larger portion of the shared debts to ensure one party is not receiving unfair treatment. In another instance, if one spouse had a spending problem and incurred significant credit card debt on a joint account, that liability may be allocated to them because they were the one responsible for it.
How debt is divided in a divorce will vary depending on the specific details of the relationship. Reach out to an experienced family lawyer today for more information and legal advice.
