Division of Liabilities in Hackensack
During a New Jersey divorce, it is essential to understand the general principles and considerations for the division of liabilities in Hackensack is essential. Liabilities encompass a married couple’s joint and personal debts or any other kind of money that they are obligated to pay to a third party. New Jersey is an equitable distribution state, meaning that marital assets and liabilities get divided fairly between divorcing spouses, but not necessarily equally. The Court considers a number of statutory factors to determine what is a fair division of assets and debts between each spouse. A property division attorney from Moskowitz Law Group can navigate the division of your liabilities, ensuring you receive a fair outcome.
Marital vs. Separate Liabilities
It is essential to distinguish between marital and separate liabilities before dividing them.
Marital liabilities are generally debts or other financial obligations that either spouse incurs during the marriage for the benefit of the marriage. This can include mortgages, car loans, credit card debt, and personal loans.
Separate liabilities are generally debts incurred by either party before the marriage. For example, student loans acquired before marriage or personal debt incurred after separation that did not benefit the other spouse. Other separate liabilities may include debts that a spouse incurred during the marriage that were not in the ordinary course of the marriage, did not benefit the marriage, or were incurred without the other spouse’s consent or knowledge. Generally, separate liabilities remain the responsibility of the spouse who assumed them.
What Factors Are Considered in Division?
The Court considers a wide range of factors when dividing marital liabilities. These include, but are not limited to:
- The duration of the marriage
- Each party’s age and physical and emotional health
- The standard of living established during the marriage
- Any written agreement the parties made before or during the marriage or concerning a plan for the equitable distribution of marital property and liabilities
- Each party’s general economic circumstances at the time of division
- Each party’s income and earning capacity
- Each party’s contributions to the other’s education, training, or earnings
- Each party’s contribution to the acquisition, dissipation, preservation, or appreciation in the amount or value of marital property and their role in incurring any liabilities
- The tax consequences of the proposed distribution between each party
- The present amount of the liabilities
- The needs of each party and their children
An attorney can help you understand the factors that could affect how your unique liabilities are divided.
Common Types of Liabilities
While marital liabilities will vary between cases, common ones include:
- Mortgages
- Credit card debt incurred during the marriage
- Other consumer debt such as personal loans incurred during the marriage
- Auto loans taken out during the marriagee
- Business debt
Mortgage debt is often a couple’s most substantial liability and is typically divided based on how any equity in or proceeds from the sale of the marital home is divided.
Legal Advice
You should always seek legal advice from a family law attorney who knows your specific situation and can ensure your rights are protected. A lawyer who understands Hackensack divorce law can give you specific guidance on how the statutory equitable distribution factors apply to your liabilities. They then work to protect your financial wellbeing and prevent you from being held unfairly responsible for any debt.
A family law attorney can also help uncover all marital liabilities, including ones that might not be obvious, to give you a clear overview of what needs to be distributed. Divorce lawyers know how to negotiate with other family law attorneys, which can result in favorable settlements regarding debt division.
A divorce lawyer clearly drafts and explains who owes what in a settlement agreement to help you avoid conflicts or confusion later.
Contact a Hackensack Divorce Attorney About Division of Liabilities
To ensure you get a fair division of liabilities in Hackensack, you should speak with one of our divorce lawyers. Contact our team at Moskowitz Law Group today to secure your legal and financial interests.
