How To Divide Marital Debt During Divorce
Many married people know that during divorce, the marital assets are divided between the two spouses. Dividing property during divorce is always challenging, but dividing the marital debt can be even more difficult. Divorce is already expensive enough, and no one wants to incur more debt during the proceedings. This is particularly true when one party feels as though they did not incur the debt or benefit from it in any way. So, how is marital debt divided during divorce? Our Media property division lawyer explains.
Dividing Credit Card Debt
Married couples often share certain types of debt, including credit card debt. If you and your spouse need to divide credit card debt, you should each get a separate credit card in your own names only, making sure the card allows for balance transfers. You and your spouse should then attempt to reach an agreement about the amount of debt you will each be responsible for. You can then divide the debt between the two separate cards according to the agreement.
Using separate cards to divide credit card debt is often better than simply assigning the debt to one or both parties. For example, if your spouse is ordered to pay some of the debt but it is still in your name, you are still technically responsible for it. If your spouse fails to repay it, the creditor can still contact you to try and collect the debt, and it may lower your credit score.
Dividing Vehicle Debt
Vehicles are often considered marital assets, but they are also a liability if a vehicle is not completely paid off with the lender. Like dividing credit card debt, it is always better if you and your spouse can agree on how to divide vehicle debt. Once an agreement is reached, the title can then be transferred to reflect the sole owner. The spouse who keeps the vehicle should refinance it so their name only appears on the loan and if necessary, to make sure the new sole owner can afford the payment.
Dividing the Marital Home
It is not uncommon for one spouse to keep the marital home after divorce, particularly if children are involved and will remain in the home. In these instances, the spouse who does not maintain ownership of the home will receive an equal amount of assets, or their spouse will have to buy them out of their share. If neither of you wants to keep the home, or you cannot afford it on their own, the property should be sold. You and your spouse can then simply divide the proceeds from the sale.
Our Property Division Lawyer in Media Can Help with Dividing Debt
Dividing marital assets and debt is never easy. At Barbara Flum Stein & Associates, our Media property division lawyer can ensure fair distribution so you obtain the settlement you are entitled to. Call us now at 610-565-6100 or chat with us online to schedule a consultation and to learn more about how we can help.