Normally, most couples are so focused on the division of assets that they forget about the debts that have to be divided in a divorce. In a divorce, spouses must divide their marital estate as equally as possible. This includes both assets and debts. Dividing debts is just as important as dividing assets. Both these factors contribute to a person’s net worth after the marriage.
To determine debts, first, the courts will identify if the debt is marital or separate. Debts incurred by spouses’ before the marriage are normally considered as a separate debt. Debts that are taken out during the marriage are deemed as marital debts.
In community property states in the US, divorce courts will divide marital debts between both spouses.
In equitable division states, judges divide spouses’ marital debts equitably (fairly) between spouses. This means that debt division might not be split in half, but the courts will try to divide the debts in a fair manner by considering the circumstances of the couples.
For courts to determine what “equitable division of marital debts” is, they will consider a number of factors. These include:
• The income of both spouses and the ability to repay the debt.
• Which spouse in the marriage incurred the debt during the marriage.
• The reason the debt was incurred during the marriage.
Courts are very discrete when it comes to the division of assets and debts during a divorce. Depending on the facts of each case, the judges would usually treat each debt differently to make a decision.
Spouses might not always be entirely clear on how the division of debts and assets work during a divorce. For that reason, an attorney could be of help. The Law Office of Erin Morse is known for hosting a group of best divorce lawyers in Orlando specializing in all aspects of divorce including debt and asset division. Through efficient services, Erin Morse Law Firm guarantee client cases will go in the right direction for optimal outcomes. Contact them now for a consultation!