What Happens to Debt in a New Jersey Divorce? What You Should Know.
In today’s day and age, debt is extremely prevalent. Many Americans are saddled with debt, whether it be credit card debt, student loans, mortgages, and more. That being said, if you are someone who is about to enter the divorce process, you are most likely very concerned about what will happen with your debt, as divorce will most likely make it considerably more difficult to pay off this debt. Please continue reading and speak with our knowledgeable New Jersey divorce attorneys to learn more about debt and divorce and how our firm can assist you through every step of the process ahead. Here are some of the questions you may have:
What is equitable distribution?
Equitable distribution is the process by which courts will divide assets in the divorce process. Equitable generally does not infer a 50/50 split, and instead, when a couple’s assets enter the equitable distribution process, the court will determine what is a fair and just distribution of assets. When dividing assets, they will break both spouse’s assets down into marital and separate property.
What is the difference between marital and separate property?
Essentially, marital property consists of all assets acquired during the course of a marriage, while separate property is all property that was acquired prior to, or outside of, a marriage, such as gifts, inheritances, and more. In most cases, marital property is subject to equitable distribution, and separate property is not.
Is debt considered marital property in a divorce?
Unfortunately, debt is generally considered marital property, which means that in most cases, New Jersey courts will make debt subject to equitable distribution, regardless of who incurred the debt. That being said, they will consider several factors when determining the amount of debt each spouse will have to pay off, including the following:
- You and your spouse’s yearly income
- You and your spouse’s age and health
- You and your spouse’s earning potential
- You and your spouse’s alimony or child support agreement
- Any other factor the court deems relevant
If you have any further questions or are about to enter the divorce process with a significant amount of debt, please do not hesitate to speak with our knowledgeable Chatham divorce attorneys today to learn more about how we can help you through every step of the legal process ahead.
Contact our experienced New Jersey firm
If you are considering a divorce and need an attorney who can effectively represent you through every step you can count on Lazor Rantas, PC. We proudly serve clients throughout New Jersey as they navigate divorce and family law matters. To discuss your case with an experienced legal team, contact Lazor Rantas, PC today.