Many New Jersey residents who are either thinking about a divorce, getting ready to start a divorce or are in the middle of a divorce case usually have many more questions than answers. Such a life-altering event as divorce demands many answers, but the primary concerns for any given person can vary widely. For many people, the primary concern is splitting the assets and finances, with addressing debt as the chief concern.
So, how will debt be addressed in your divorce case? After all, neither of the soon-to-be ex-spouses is likely to fight for taking on more debt than they absolutely must. A recent news article examined this issue and pointed out some of the most common concepts that family law courts rely upon when dividing up a married couple’s debt.
First and foremost, it is important to assess which of the spouses actually signed on for liability for certain debts. For example, student loan debt may only be in one person’s name. If so, that debt can be easily assigned to the spouse who signed for the loan. Other debts, however, such as mortgages, car loans and credit card debt, can oftentimes be held in both of the spouses’ names. If so, dividing up the “jointly held” debt can become much more complicated.
New Jersey residents who are looking for answers about how their debts will be addressed in a divorce may benefit from getting more specific information about their own unique financial situation, preferably before they are right in the middle of a divorce case and other issues are being debated as well. Getting a full picture of where you will stand in post-divorce life can give a great perspective on the toll that actually going through with a divorce may take on your life.