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How Should You Deal With Your Marital Debt in New Jersey?

It is important to understand that marital debt is not solely given to the partner with less of an income. Continue reading and reach out to our skilled Morris County NJ divorce attorneys today to learn more.

Does marital debt fall under equitable distribution?

In the event where one party earns more than the other, that does not mean that the party will be responsible for more of the marital debt. In fact, in New Jersey, equitable distribution has been adopted to set forth the factors that must be viewed before allocating assets and liabilities between divorcing couples.

In New Jersey, the Equitable Distribution Criteria describe the factors that must be considered by a court, each party, and their attorneys in formulating a settlement proposal. The criteria include the following:

a) The duration of the marriage;
b) The age and physical and emotional health of the partners;
c) The income or property brought into the marriage by each party;
d) The standard of living established during the marriage;
e) Any written agreement made by the parties before or during the marriage concerning an arrangement of property distribution;
f) The economic circumstances of each party at the time the division of property becomes effective;
g) The income and earning capacity of each party, including educational background; training; employment skills; work experience; length of absence from the job market; custodial responsibilities for children; and the time and expense necessary to acquire sufficient education or training to enable the party to become self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage;
h) The contribution by each party to the education, training, or earning power of the other;
i) The contribution of each party to the acquisition, dissipation, preservation, depreciation, or appreciation in the amount or value of the marital property, as well as the contribution of a party as a homemaker;
j) The tax consequences of the proposed distribution to each party;
k) The present value of the property;
l) The need of a parent who has physical custody of a child to own or occupy the marital residence and to use or own the household effects;
m) The debts and liabilities of the parties;
n) The need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children;
o) The extent to which a party deferred achieving their career goals; and
p) Any other factors which the court may deem relevant.

Reach out to our experienced Morris County NJ divorce attorneys to learn more about these requirements.

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At Townsend, Tomaio & Newmark, LLC, our seasoned divorce and family law attorneys ensure that through the process of resolving your family matter, you feel empowered, not overwhelmed. Providing unwavering support, undivided attention, and unflinching advocacy, our team invests in your cause, working tirelessly to pave your path toward a brighter tomorrow. If you need an experienced legal team to guide you through your divorce, contact Townsend, Tomaio & Newmark L.L.C today.