What happens to debt in a divorce?

When a couple in New Jersey makes the difficult decision that their marriage is no longer working and they want to get divorced, they will have to address a number of different issues. One of the biggest issues that many couples are concerned about is regarding what will happen to their property as well as their debts. Of course, no spouse is going to want to be responsible for debt that they claim is the fault of the other party.

New Jersey believes that in a marriage, both spouses are responsible for any debt that is accrued throughout the marriage. So, let’s say one of the spouses has gone out and put a significant amount of charges on a credit card. Unfortunately, both of the spouses are liable for that debt now. However, if the court believes that the spouse incurred a lot of debt to retaliate for the divorce, they may be held responsible for paying it. Like marital property, the courts will use equitable distribution to divide outstanding debts that the couple has.

It is important to note that separate debts from before the marriage are usually not included in the equitable distribution process, such as student loans. If you are concerned about taking on your spouse’s debt in the divorce, contact our firm today to discuss your matter.

If you require strong legal representation for matters of divorce and family law, contact The Law Offices of Paone, Zaleski & Murphy to schedule a consultation with one of our experienced attorneys today.