When couples go into a divorce, they are usually aware of the fact that they are required to divide their assets between the two of them. This can include any houses, cars, retirement plans, and other belongings that they own together. It is important to also be aware that spouses divide the debt they have accumulated over the course of the marriage as well. This can include mortgages or credit card debt. To learn more, continue reading below and contact an experienced New Jersey divorce attorney.
How is Debt Divided in a Divorce?
Courts in the state of New Jersey use the process of equitable distribution in order to decide how assets and debts are to be divided in a divorce. It is important to understand that the term “equitable” does not mean the division of debt will be equal. Instead, this means it is a fair and just division of the debt, meaning spouses do not always receive the same amount.
What is Considered When Dividing Debt?
In order to determine how debt can be divided fairly between two spouses in a divorce case, courts in the state of New Jersey will consider various factors relating to the marriage. This can include:
- 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
If you require strong legal representation for matters related to divorce or family law, Haber Silver Simpson & Russoniello is here to help. We proudly represent clients in Morris County and throughout the state of New Jersey. Contact our firm today to schedule a consultation.