You probably know that your property needs to be split up during a divorce, but did you know that your joint debts have to be dealt with in the same way? If you and your spouse share any debt, that needs to be addressed during the divorce process. Our Morris County, NJ division of assets attorneys can tell you how this might work.
What’s the Difference Between Separate and Joint Debts?
When you take a full accounting of your finances, you might find that some of your liabilities should be considered separate and others should be considered joint debts. In most cases, a loan or debt that you or your spouse took out before you got married would be considered separate. Good examples of this would be student loans or a mortgage on a home that you bought yourself.
If you and your spouse took on financial obligations after you got married, then those are probably going to be seen as joint debts. Good examples would be a mortgage or car loan that you signed together or a loan you took out to get work done on your home. You agreed to these during your marriage, so both of you have a responsibility to handle them. This can mean that you both continue to make payments or sell off other assets to pay it off. If the debt is a mortgage, you could also decide to sell the home and split the proceeds.
Do I Have to Go to Court to Settle Arguments Over Joint Debts?
Most people think that they’ll have to go to court to solve every issue, including what should be done with joint debts. This isn’t necessarily true though. There are alternatives to litigation that can work well, especially if you and your spouse are willing to talk things out.
In mediation, you and your spouse can talk about issues like joint debts. A third-party mediator can help foster discussion and help you come to an agreement about how such issues are handled. There’s also collaborative divorce, where you work with your lawyers and a team to come to agreements about important matters like these.
The point is, that there are options other than contentious battles in court. If you and your spouse are ready to negotiate in good faith, you can make a lot of progress on the financial issues facing you in your divorce.
How Can a Lawyer Help?
You should have your own representation in a divorce. This is true even if your spouse says it’s unnecessary or if you just want to get through the process as quickly as possible. A lawyer can look out for your interests and help you work out fair agreements concerning joint debts, property division, and other financial matters.
Contact Our Law Firm Today
So if you want to make sure that you aren’t stuck with responsibility for an unfair portion of your joint debts, contact Townsend, Tomaio & Newmark, L.L.C. We can tell you more about how our lawyers can help you negotiate a fair agreement.
