Debt And Divorce – Let’s Find Out What Happens!

Debt And Divorce - Let’s Find Out What Happens!

Divorce is already a complex and mentally tormenting journey for individuals. A sense of estrangement, loss of trust, disappointment, and involvement in vital relationships take a toll on the couple’s mind. Still, it’s better to say goodbye to a relationship where two people cannot live happily ever. Most people think about alimony and property distribution when they part ways. However, in situations like this, one also has to know what happens to the debt they may have. Since all these are part of the legal process, some advanced knowledge can only help you prepare for things you forget to account for amidst all the stress.

You don’t have to worry about nuances if you hire a qualified Mesa divorce lawyer. Their extensive experience and understanding of law in a specific state or region make them foresee everything. Still, having a little idea about important matters always helps. So, here is a brief insight.

Approach toward debt in divorce cases

Debt And Divorce - Let’s Find Out What Happens!

States can treat this issue differently based on the system they follow. Usually, two types of judgments prevail – community property and equitable distribution. As evident, the latter approach follows a system of fair treatment with property and debt distribution. It doesn’t propagate equal distribution, though. However, community property rules suggest splitting property and debts into two halves. Again, the law can vary from one place to another, regardless of whether it concerns equitable distribution or community property. That’s why you need an expert advocate to guide you in divorce-related aspects.

  • Equitable distribution

Both spouses will likely share the burden, no matter who incurred money or “marital” debt during the marriage. However, anything incurred before marriage can be the sole responsibility of the one who incurred it first. If you have a joint account in a bank for debt payment for marital assets, this can complicate things. The one who didn’t initiate the debt may claim reimbursement. The final decision depends on the state’s law and individual cases. Anyway, there can be other intricacies also.

  • Community property

Again, laws around this approach consider the matter of individual and joint owed debts separately. Whether you borrowed alone or with your partner during the marriage, the court terms it “community” debt. But any debt taken before the wedding, such as a student loan, is a separate obligation. Nevertheless, the responsibility for the community debt can fall on both individuals equally or equitably based on the circumstances.

The divorce lawyers inform that debt distribution and property distribution processes aren’t much different. If you want to prepare for debt distribution, you have to list down all the debts you owe and segregate them into two parts: individual obligation and joint obligation. If you have any confusion, you can discuss it with your attorney also. Divorce filings also include financial declarations, mainly if certain corners are disputable. These statements cover debts, earnings, and all types of assets. When you hire a lawyer, you can depend on them to show you the path. They can help you and guide you in every matter.

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