When a couple chooses to get divorced, the question of how to divide any debts they may have accrued throughout their marriage can quickly become contentious and complicated.
Understanding how the legal system typically deals with unpaid debts can help individuals make informed decisions as they move forward with their divorce proceedings. As with any potentially complex legal matter, it is always advisable to work with an experienced attorney as you move forward.
Separating assets and debts in a New Jersey Divorce
For many people, the first thing that comes to mind when considering the financial aspect of a divorce is what will happen to the couple’s collective assets. Thinking about shared debts, however, is an equally important consideration.
If your spouse has been primarily responsible for managing your joint finances, you should immediately begin to gain a thorough understanding of your financial situation. Each partner should have equal access to financial documents as the divorce proceedings commence. Knowing your current net worth is a good first step as you move to protect your best interests when getting divorced.
In general, courts will do their best to equally divide assets and debts. However, they may also use them to balance each other out. If a large asset goes to one spouse, that may also need to assume a larger amount of debt. For instance, if one spouse gets to keep an asset like a motor vehicle, he or she may also have to assume a share of the debt that is nearly equal in value to the car.
If the end of your marriage has coincided with the event of bankruptcy for one or both spouses, it is important to remember that court ordered payments, such as spousal support and child support, cannot be halted by bankruptcy filings. Going bankrupt may protect you from other creditors, but you are still expected to meet your obligations for any court ordered payments for which you may be liable.
Staying informed
The best way to handle debt when going through a divorce is to completely clear it before the legal proceedings begin. If that’s not possible, both you and your attorney should have a clear picture of you and your spouse’s shared finances prior to negotiating the terms of your divorce.
It’s worth noting that securing a prenuptial agreement prior to getting married can also, in large part, mitigate the process of awarding assets and debts, as this process is spelled out in the agreement before any divorce proceedings could possibly begin. This can make the end of a marriage much more amicable in the long term and save both parties a substantial amount of time and money.
Contact a New Jersey Divorce Lawyer
If you are about to get divorced in New Jersey, it’s important to consult legal counsel you can trust. Work with the skilled New Brunswick divorce lawyers at the Law Office of Steven M. Cytryn to learn more about your legal options.
