How is Debt Divided During a New Jersey Divorce?
When a couple decides to get married, they agree to join their lives together. This generally means combining assets. Unfortunately, it may also mean taking on your partner’s debt. When a divorce occurs, both assets and debts will have to be divided between the two parties. You may be wondering how this works. Read on for more information regarding the division of debt in a New Jersey divorce.
How is Debt Divided in a Divorce?
In New Jersey, both debts and assets will be divided by the process of equitable division. Equitable division divides assets and debts based on what is fair and just. It is important to note that the term is “equitable,” not “equal.” It is important to understand that, generally, debts and assets will not be split down the middle. Instead, they will be divided based on what is fair. A New Jersey court will work hard to determine what is fair to both parties when it comes to the division of debts and assets during a divorce.
What is Considered When Dividing Debt?
The division of debt is an important decision to make. As a result, there are several specific factors that New Jersey courts consider when dividing debt in a divorce. This includes 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
A divorce is a difficult process, and it is important to have the right legal time on your side. Our firm is here to fight for you and ensure that your divorce is fair and just. Contact our firm today to speak with an experienced and dedicated attorney. We are here to advocate for you and walk you through the process every step of the way.
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If you need an experienced legal team to guide you through your divorce, contact Townsend, Tomaio & Newmark L.L.C today.