When you and your spouse decide that divorce is the likely outcome for your relationship, you may anticipate important and lengthy discussions regarding your assets and property division. However, there may be one important aspect of this process you’re forgetting – what will happen to joint debts? Unfortunately, among all the other considerations made during a divorce, joint debt is often forgotten. As such, it’s in your best interest to learn how this property is handled and the importance of working with Long Island property division lawyers to discuss your legal options during this process.
How Does New York Divide Property?
In New York, all marital property is subject to division during a divorce. Marital property is generally anything obtained during the marriage, or separate property that has been commingled with marital property. Any assets deemed separate property will not be divided during your divorce and will remain the sole property of the spouse who owns it.
As such, your marital property will be divided using a method known as equitable distribution. Under New York state law, this means that assets are not automatically divided evenly between the spouses, but rather distributed based on each spouse’s contribution to the marriage. It’s imperative to understand that both domestic and financial contributions will be considered to help protect stay-at-home parents.
Do the Courts Use the Same Method to Divide Joint Debts?
When you are going through a divorce, the court will utilize the same equitable distribution method to divide the debt accrued during your marriage between you and your spouse. This helps ensure the debt is divided based on fairness as opposed to equality if the debt is not equal.
For example, if you open a credit card in your name before your marriage and your spouse is not an authorized user of the credit card, you would remain solely responsible for the balance. However, if you and your spouse open a joint credit card after your marriage, you will both be responsible for making payments on the card. Typically, the court will examine the kind of debt accrued on the card to determine how to divide the debt. For example, if the card is primarily used for household purchases, like groceries, linens, furniture, or even utilities, the court will likely divide the debt equally. However, the court could assign a larger portion of the debt to one party if it determines they are responsible for a significant portion, or if they simply have the ability to pay more of the debt.
Going through a divorce can be an incredibly difficult legal process that requires careful consideration and a deep understanding of divorce law to ensure your rights are protected. As such, it is in your best interest to connect with an experienced attorney with the Sklavos Law Firm to help guide you through this process. Our team understands how complicated these matters can be, which is why we will do everything possible to assist you. Contact us today to learn more.
