On the one hand, you and your spouse will accumulate a significant amount of assets (i.e., your family home, cars, retirement plans, etc) throughout the course of your marriage. On the other hand, you and your spouse will also incur a lot of debt (i.e., credit card debt, your mortgage, etc) during this time. So if you and your spouse choose to undergo a divorce, both assets and debts must be divided. Follow along to find out how the New Jersey courts will divide your debts and how one of the proficient New Jersey equitable distribution attorneys at Haber, Silver, Simpon & Russoniello can help you achieve the best settlement outcome possible.
How are debts divided in a New Jersey divorce?
Notably, the state of New Jersey follows the equitable distribution law. This law has the New Jersey courts divide assets and debts in a way that is fair and reasonable. To clarify, “equitable,” “fair,” and “reasonable” does not necessarily mean an even 50/50 split. This means that you and your spouse may not receive the same amount of assets and debts at the finalization of your divorce.
What circumstances are considered when dividing debts in a New Jersey divorce?
With equitable distribution in mind, the New Jersey courts will also consider your and your spouse’s unique circumstances when dividing your debts. Such circumstances are similar to the ones that are considered when they are dividing your assets, and they may include the following:
- The duration of your and your spouse’s marriage.
- The age and health of you and your spouse.
- The standard of living that you and your spouse established during your marriage.
- The yearly incomes of you and your spouse.
- The earning capacities of you and your spouse.
- The economic status of you and your spouse.
- The property acquired by you and your spouse during your marriage.
- The value of the property in question.
- The contributions of each spouse in increasing the value of the property in question.
- The tax consequences of the property in question.
- The standing child support and child custody agreements.
- Whether either spouse of their shared child has special medical or educational needs.
- Whether either spouse delayed their career goals during the marriage.
- Any standing prenuptial or postnuptial agreements.
At the end of the day, the New Jersey courts will factor in any circumstance that they deem relevant. We recommend that you retain the services of one of the talented attorneys from our Morris County divorce & separation law firm. We will do everything in our power to protect your assets and shield you from any debts that do not belong to you. Give us a call today.