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How debt works during divorce

On Behalf of | Nov 11, 2022 | Divorce

It’s normal for New Jersey residents to expect many life changes after a divorce is finalized. Changes may involve moving, adjusting to a custody schedule and navigating different financial circumstances. Finances are an important part of divorce as one may be expected to pay spousal support, pay child support or divide assets. But debt is also an important part of divorce negotiations and it’s often one that many don’t consider until they’re forced to confront their debt while dealing with the other parts of the divorce process.

Debt must be dealt with during a divorce

When a couple accrues debt during a marriage, it’s generally considered joint debt. This type of debt includes credit cards, mortgages on homes, and loans that both parties signed. But some types of debt, like student loans and car payments, may not be considered joint debt. When first considering divorce, one should make a list of all loans, credit cards and other debt to start the process of negotiating which party will be responsible for each.

Some couples may be able to work out the negotiations of debt responsibility on their own while others will need the court to review everything and assign responsibility accordingly. No matter the circumstances, it’s important to have all financial divorce terms put into writing. This will prevent confusion or problems in the future.

Follow the legal steps

Debt and other financial matters can cause contention during a divorce. Even under the best circumstances, dealing with money can cause hard feelings between divorcees. It’s important for New Jersey residents to seek legal advice when dealing with divorce matters. An experienced family law attorney can provide the guidance needed to complete the divorce process.