Family Law Debt
When you are getting a divorce, you want to make sure all aspects of your children’s lives have been considered. Where and with whom they will live, where they will attend school, who will provide their medical care and all decisions that will have a bearing on their lives. However, the financial matters surrounding a divorce are just as important and merit all of your attention and understanding. Otherwise, your job, your career, and even your retirement can be put in jeopardy.
Throughout a marriage, couples tend to accumulate both assets and debts. They may purchase a house and acquire a mortgage, they may buy one or two cars and get their respective leases or loans, they may have bought many things and accumulated vast amounts of credit card debt. On top of that, you may have entered into the marriage with debt you acquired previously, such as student loans and others.
How does the division of assets and debts work in New Jersey?
Even though you and your spouse own a home, you may be behind on your mortgage payments. That may also be the case with your car loans. That is why it is so important to get the legal advice of a family law debt attorney to make sure assets and debts are divided fairly and equitably.
What does “equitably” mean in this case?
When it comes to divorce, the term equitable is used to mean a fair division of assets and debts. It is not just a matter of dividing everything fifty-fifty. To achieve an equitable distribution, the financial future of each spouse after the termination of the marriage is considered. Of course, it is easy to imagine that many of the factors that the courts take into consideration may end up being quite subjective. Once again, working with an experienced family law debt lawyer is crucial here.
Some Assets May be off the Table
A prenuptial or postnuptial agreement means that some assets such as family heirlooms, real estate, jewelry, inherited trusts, and other items may not be up for distribution. Items acquired during the marriage will be equitably divided among the soon-to-be ex-spouses.
What are the most common assets that are equitably divided?
Besides real estate, which may include the marital home but also vacation homes, and investment properties, these are the assets that most commonly get divided:
- Vehicles, including cars, boats, campers, or motorcycles
- Investments such as stocks and bonds, mutual funds, and others
- Retirement accounts including pensions
- If there is a business, whether one or both of the spouses worked there, its assets will also be divided
Dividing the Debt Can Get Complicated
Many couples admit that the debt they have accumulated is one of the reasons that lead to their divorce. And in some cases, that debt is the fault of one of the spouses who may have, for example, a gambling addiction. But in many cases, even though one spouse used the credit card more, it could have been to buy food for the family, so the debt belongs to both. Also, the way this debt is divided may have an impact on alimony or child support payments. Do not try to understand all family law debt on your own. Make sure to have a family law debt attorney by your side to ensure the best outcome for you.
Set up your initial consultation at the Law Office of Stuart M. Nachbar, P. C. to review your assets and debts and get advice on how to proceed.