Jump to Navigation
Caring and Professional Family Law Services

Dealing with debt issues in divorce, P.2

In our previous post, we began speaking about the issue of debt division in divorce. As we mentioned, this is as aspect of divorce that isn’t often considered by folks. The media, when it speaks about division of anything, usually focuses on how marital assets will be divided by rich and famous couples. Debt division is also an important aspect of the process, though.

In addition to credit card debt, couples very often have mortgage debt to deal with in divorce. Dividing mortgage debt is not as easy as it is to divide credit card debt, though, partly because the debt is usually significant. Couples have to decide, first of all, whether they want to keep the home. If they, don’t they need to sell it and divide the proceeds. If both parties want to keep the home, a court needs to determine who will take ownership. 

Determining ownership of family home is decided differently in different states, but very often the party who will take the home either has more income or has full custody of the children. The party who is awarded the family home will buy the other party’s equity and take ownership.

A variety of other types of debt can come into play in divorce as well, including student loan debt, tax debt, and medical debt. For these debts, courts will assign an appropriate degree of responsibility to each party based on the principle of equitable distribution. It is important to keep in mind, though, that creditors are not bound by divorce agreements and can hold a party responsible for debt even if the other party agreed to pay that debt under a divorce agreement

Family Law Questions? Ask Peter Now:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

Dealing with debt issues in divorce, P.2 | Peter A D'Angelo, Attorney at Law, PLC