One of the most notable and highly contested parts of a divorce is the division of assets between the two spouses. In a marriage, couples tend to acquire a variety of assets throughout its duration. This can include retirement plans, houses, cars, etc. In addition to this, they can also accumulate debt, such as credit card debt and mortgages. It is because of this that both assets and debts are divided in divorce cases. To learn more, continue reading below and contact an experienced New Jersey divorce attorney.
How is Debt Divided in a Divorce?
In the state of New Jersey, courts use the process of equitable distribution to determine how assets and debts should be divided in a divorce. This means the assets will be split between the two spouses based on what the court establishes as fair and just. It does not necessarily mean the division will be equal and spouses do not always receive the same amount of debt.
What is Considered When Dividing Debt?
When determining what is considered a fair division of debt in a divorce, courts in New Jersey will take a look into a variety of different factors. 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
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