If you and your spouse have debt, it’s important to understand that it won’t simply disappear when you get divorced. During divorce proceedings, you will need to address the division of your joint debts. Understanding how these shared financial obligations affect divorce proceedings is vital to ensure a fair division of assets and responsibilities. Please continue reading to learn how a determined Bristol County Division of Assets and Debts Lawyer can help safeguard your financial interests.
Is Massachusetts an Equitable Distribution State?
Massachusetts, like many other states, operates under an equitable distribution rule. This means that the court will divide assets and debts in a fair way during a divorce, but not necessarily equally. When determining an equitable distribution, the court will consider various factors, including the duration of the marriage, the income of each party, the standard of living established during the marriage, each spouse’s contributions to the marriage, and the needs of each party. This model ensures that the divorce doesn’t leave one party financially destitute.
What Happens to Our Joint Debts During a Divorce?
During divorce proceedings, joint debts are typically handled in the same manner as joint assets. After the court has established which liabilities are joint and which are separate, they will examine each party’s financial circumstances to determine who should bear the responsibility moving forward. When determining who is responsible, the courts may consider the following factors:
- The type of debt
- How much debt the couple owes
- Which spouse benefited most from the debt
- Which spouse is best able to pay off the debt
- Each spouse’s income and earning capacity
Generally, debts that a party took on before the marriage will remain that party’s sole responsibility. However, any debts the couple incurred during the marriage, such as the mortgage on the family home or joint credit card bills, will be considered marital debts. Therefore, they are subject to equitable distraction just like any other asset.
It’s important to note that couples can negotiate how joint debts will be handled. This may include one spouse taking on a larger portion of the debt based on their income or contribution to the debt, or attempting to refinance the debt into one spouse’s name alone. However, in many cases, this will involve consulting a knowledgeable attorney to ensure the division is fair.
Given the complexity of dividing joint debts during a divorce, it’s in your best interest to seek advice from a seasoned attorney from the Law Offices of Cynthia L. Hanley. If you are considering a divorce, connect with our firm today as we can help you determine the best course of action.
