Disagreements about money remains a major cause of marital dissolution. Unsurprisingly, these disagreements can easily erupt during the divorce process as well, especially when debt is involved. Here are some pointers for dealing with debt during a divorce proceeding in New Jersey.
New Jersey is deemed an equitable distribution state. This means that courts split all marital assets — or assets accumulated during the course of a marriage — in what they believe is a fair, or equitable manner. The same happens for any debts incurred while the two divorcing individuals were married. However, if a spouse had a debt before getting married, he or she would be responsible for paying this debt after the divorce.
What happens to debts, though, while the two parties are going through the divorce process? As a general rule of thumb, both parties are responsible for making their mortgage payments and paying on their credit cards until their divorce concludes. However, in certain situations, the court might require one party to cover the debt and then receive credit for this as part of the couple’s final accounting process.
Navigating asset and debt division during divorce can no doubt be complicated and overwhelming. However, an attorney in New Jersey can help a divorcing individual to understand his or her options and make educated decisions concerning these matters. The attorney will push for a personally favorable outcome for his or her client — either at the negotiation table or at divorce trial — given the circumstances surrounding the divorce proceeding.