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Division of Debts & Assets in Divorce
Divorce can have great financial consequences on the parties involved and just because two people are divorcing doesn’t mean debts go away. Even for those who have a somewhat friendly relationship and agreements on issues are not apparent, problems with joint debts still occur. Finances for both parties can be affected for a very long time; therefore a divorce attorney can guide you when it comes to a division of debts and assets. Don’t wait until it’s too late. Contact a divorce lawyer today to find out where you stand when it comes to debt and asset division.
Asset and Debt Division in Different States
Property and asset distribution as well as debt division in divorce is determined differently by each state to state, as there are specific state divorce laws regarding what is deemed “marital property.“ For example, in Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and Puerto Rico, property of a married person is classified as either community property (owned equally by both spouses) or is the separate property of one spouse. Either party may be entitled to retain certain assets or either party may be required to pay certain debts that the court considers separate. Since all assets and debts are not deemed community property, each spouse will get personal property, assets and debts whose worth adds up to his or her percentage. In all states, assets and earnings accumulated during marriage are divided fairly, but not necessarily equally. Often, two-thirds of the assets go to the higher wage earner and one-third to the other spouse. Submit your case to our office and let a StraightDivorce.com sponsored divorce lawyer help you find out where things regarding asset and debt division stand in your state.
When it comes to marital property, certain property that was acquired during the marriage may be excluded from marital property. By way of example, some states do not consider it marital property if the property was a gift or inheritance given to a spouse during the marriage. Other times if the property was purchased with separate funds by one spouse prior to the marriage, it is not considered marital property. And if the property was excluded by a valid agreement such as a prenuptial agreement or if separate property was acquired before the marriage and has since increased in value, it is not considered marital property. A divorce attorney can explain whether your property is considered marital property.
The Courts Involvement in Division of Debts and Assets
As in many issues pertaining to domestic relations law, the court will apply tremendous discretion when it comes to division of debts and assets. Courts will take into account the financial needs of both parties as well as any unusual expenditures of a spouse. Because asset and debt division is so complex, issues concerning asset and debt division must be properly addressed right from the start. In fact if one spouse enters into agreement regarding debts and assets and the agreement does not protect their interests, or if a court is not presented with the information that protects the spouses’ interests, it could be impossible to return to these issues at a later date. For that reason, it is critical that a high quality resolution is determined initially. To avoid making huge mistakes that could affect your finances for years to come, reap the benefits and guidance of our sponsored family law attorney by contacting us.
About the Divorce Attorneys at Straight DivorceWhen dealing with family law and divorce issues, a divorce attorney can help make the transition a little smoother. Making the divorce process as simple as possible, the divorce lawyers at Straight Divorce are available for consultation by filling out the free divorce case review or by calling us at 1 (877) 420-6657.