There are many different parts to a divorce, including the division of assets between two spouses. Throughout the duration of a marriage, couples tend to acquire a variety of assets. This can include cars, houses, retirement plans, etc. In addition to this, couples usually accumulate debt, such as mortgages and credit card debt. It is because of this that, during a divorce, the court will divide both assets and debts between the spouses. Continue reading below to learn more about how this is done and contact an experienced New Jersey divorce attorney for assistance.
How is Debt Divided in a Divorce?
In order to divide debt between spouses in a divorce, courts in the state of New Jersey use the process of equitable distribution. It is important to understand that “equitable” does not necessarily mean the division will be equal. Instead, it is a fair and just division of assets between both parties. This means that spouses will not always receive the same amount of debt in a divorce.
What is Considered When Dividing Debt?
When the court works to determine what is fair when dividing a couple’s debt between them, many different factors will be considered. These have to do with each spouse as an individual as well as their marriage. This can include the following:
- The length of the marriage
- Both parties’ age and health
- Any income or property brought into the marriage
- Both pirates’ standard of living
- Written agreements made either before or during the marriage
- Both parties’ economic circumstances after the division of property
- Both parties’ income and earning capacity
- Any contributions made by one spouse to the other’s ability to earn income
- Any contributions made that increased or decreased the value of the couple’s marital property
- The tax consequences of the proposed property distribution
- The present value of the property
- The need of a custodial parent to use the marital home
- The parties’ debts and liabilities
- The need for a trust fund to pay for medical or educational costs of a spouse or child
- Any delay incurred by one party in achieving his or her career goals
- Any other factors which the court may deem relevant
Contact our Firm
We understand that those getting a divorce most likely have several questions regarding the weeks and months to come. Paris P. Eliades Law Firm, LLC is honored to serve the people of New Jersey, including Sparta, Sussex County, Morris County, Passaic County, and Bergen County with the quality legal services they deserve. If you are getting a divorce or have any other questions regarding divorce-related matters, please do not hesitate to contact our firm for a consultation today.