One of the many things that must be settled in your divorce proceedings is how your assets will be divided. In a similar way, the New Jersey court must also settle how your debts will be divided. Continue reading to learn how debt division works in a New Jersey divorce and how one of the experienced Hudson County family law attorneys at Greenberg & Walden, LLC, can work on your behalf to fight off any debts that do not belong to you.
How does the division of debt work in a New Jersey divorce?
First, the New Jersey court will distinguish between your separate debts and your marital debts. Specifically, marital debts are the debts you and your spouse incurred during your marriage and before the date of separation. Some examples may include your credit card debt, your student loan debt, or your mortgage, among other debts.
Then, the New Jersey court will have your marital debts undergo equitable distribution. This method is used to divide marital debts in a way that is reasonable and fair but not necessarily in a way that is a 50/50 split. So, one spouse may end up being assigned more debt than the other.
What circumstances factor into the division of debt in a New Jersey divorce?
Evidently, every couple has unique circumstances regarding their finances and their overall divorce. This is why the New Jersey court will take into consideration any factor that they deem relevant when conducting their division of debt. Just some of the factors that they may look into are as follows:
- The duration of your and your spouse’s marriage.
- The age of you and your spouse.
- The physical and mental health of you and your spouse.
- The standard of living that you and your spouse grew accustomed to during your marriage.
- The yearly incomes, earning capacities, and economic status of you and your spouse.
- The property or properties acquired by you and your spouse during your marriage.
- The value of the property or properties in question and their tax consequences.
- The decided child support and child custody agreements, if applicable.
- Whether your child has special medical needs or educational needs.
- Any valid prenuptial or postnuptial agreements.
In the end, your financial situation at the finalization of your divorce will likely be less than ideal. So you do not deserve to have to incur debts on top of this, especially if these debts do not belong to you. This is why we recommend that you retain the services of one of the skilled Hudson County family law attorneys. We will provide you with strong legal representation to protect your assets and ward off debts. Call us today.