Written by Jonathan Breeden
The Court considers many determining factors in order to divide bills in a divorce. The process of dividing bills can get very complicated and can make couples feel bitter and resentful. A North Carolina divorce lawyer can help you understand the process and work towards a fair distribution. Jonathan Breeden of Breeden Law Office has many years of experience with the local divorce courts, and can help you navigate the equitable distribution of both your property and your debts in divorce. To get help with your case, call (919) 661-4970 today.
The division of marital property and debts can be one of the most complicated parts of a divorce.
Couples who are divorcing may be eager to divide up their marital property as quickly as possible so that they will have a bit of a nest egg with which to start their new lives. Yet it’s important to remember that marital debt is another element that must be divided as well. Dividing your bills in a divorce can cause even the most level-headed people to erupt, as marital debt has the potential to greatly impact the value of the marital assets.
Experienced North Carolina divorce lawyer Jonathan Breeden is knowledgeable about state and local laws regarding the division. He has helped people with legal needs for more than 20 years. If you need help with a divorce, call Breeden Law Office today at (919) 661-4970.
Marital debt is simply debt that you and your spouse acquired, either separately or together, while you were married and before you separated. Like marital property, it is something that belongs to both of you, regardless of who is actually named as the property or debt holder.
For example, if a husband purchases a sports car during the marriage and only his name is on the title, the car will be considered marital property in a divorce. Likewise, if your husband finances a sports car during your marriage, the remaining amount owed on his auto loan can become marital debt. It is vitally important that you consider all debts collected during the marriage and give consideration as to which debts are marital and which can be separate.
If your spouse incurs a debt, such as a student loan, he or she may claim that debt is marital because it improved the financial situation of your marriage. However, if you disagree, you must prove it should not be marital debt due to one or more of the Court’s consideration factors.
Establishing what is and what is not marital debt can be implemental in establishing your new life without the ties of your former marriage. If you have questions involving debt distribution, contact a North Carolina divorce attorney today at (919) 661-4970.
Equitable distribution applies to dividing assets as well as debts. North Carolina recognizes two types of debt – marital debt (incurred during marriage and before separation) and separate debt (incurred before marriage and after separation). The Court may divide marital property, including marital debt, in half. However, equal shares are not always seen as “equitable,” so the Court reserves the right to divide property in another way if it determines that is a more fair division of assets and debt.
When determining equitable distribution of property and debts, the Court will examine certain circumstances (see General Statute §50-20), such as:
The court will also consider any other circumstance that seems “just and proper.”
Going through a divorce can be complicated and stressful, and the added complexity of dividing debts can be daunting. The divorce attorneys at the Breeden Law Office can guide you through the process.
Attorney Jonathan Breeden has been helping clients for decades, ensuring they get an equitable divorce. Call (919) 661-4970 to schedule your consultation.