Dividing assets between spouses is one of the biggest concerns for many couples who are facing a divorce. Couples can acquire a significant amount of assets throughout a marriage. This may include houses, cars, retirement plans, and more. However, they can also accumulate debt throughout a marriage. This may include credit card debt and mortgages. When you go through a divorce, both debts and assets will be divided between the spouses. To learn more about this process and what to expect, continue reading. If you require assistance with any divorce matters, do not hesitate to reach out to our experienced New Jersey divorce attorney.
How is debt divided in a divorce?
The division of assets and debts will be handled in a process referred to as equitable distribution in New Jersey. This process will divide assets and debts based on what is fair and just. This means that the division of assets and debts will not necessarily be an “equal” split. The values that each spouse will receive will not necessarily be identical. Though a judge will work to determine what is fair.
What is considered when dividing debt?
When dividing debt in a New Jersey divorce, the court will consider several specific factors including the following:
- The length of the marriage
- Both spouses’ age and health
- Both pirates’ standard of living
- Both spouses’ income and earning capacity
- Both spouses’ economic circumstances after the division of property
- The present value of the property
- The spouses’ debts and liabilities
- Any income or property brought into the marriage
- Written agreements made before/during the marriage
- Any contributions made by one spouse to the other’s ability to earn income
- The tax consequences of the proposed property distribution
- Any contributions made that increased or decreased the value of the couple’s marital property
- 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 their career goals
- The need of a custodial parent to use the marital home
- Any other factors the court may deem relevant
If you have any further questions about this process and what to expect, do not hesitate to reach out to our New Jersey divorce attorney.
Contact our experienced Bergen County firm
At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.