When you are going through a divorce with your spouse, the issues that come with the dividing of your property and debt in a fair manner are inevitable. The property that you and your spouse share are called marital property. This includes any houses, cars, furniture, and anything else that you purchased together. Things such as car loans, mortgage, and joint credit card debts that both you and your spouse are responsible for are called marital debt.
This begs the question of how marital property and debt can be divided among the two parties in a fair manner after divorce.
The article will address this matter in detail.
When it comes to dividing property after a divorce, fair does not always mean that each person gets half of everything. Judges’ decisions are usually based on whether one person is more at fault in the other for the marriage end, or if one person is more in need of the property. It can also be divided by one person taking on more marital debt in exchange for more marital property.
Separate property refers to things that are owned solely by you. It could be something that you owned before the marriage, such as an apartment or a car. It could also be gift or inheritance that you received during your marriage. However, in the case that your spouse contributes to doing something with the property, such as helping to renovate the house that increases its value, separate property can be divided as well. This means that separate property can turn into marital property if the increase in value is as a result of both parties’ efforts. Moreover, separate property can be divided if your spouse’s share of the marital property is not enough to satisfy them, and you need to share with them your separate property.
Once your judge has made the decision on who gets to keep what, you then need to transfer titles or deeds by signing and filing the required paperwork. For example, if it has been decided that you should be the one to keep the house, but both your names are on the current deed, then you will need a quitclaim deed. This means that your spouse, as the person who is not keeping the house, will have to sign the quitclaim deed to transfer their interest in the house to you. Then, your Judgement of Divorce will have both you and your spouse complete the documents required to transfer property.
As with marital property, your judge has the power to decide how your marital debt is going to be divided between you and your spouse. Again, it does not always have to be divided in half for it to be considered fair. The decision is based on whether one person is more at fault for the divorce or whether one is capable of paying more. It can also be based on whether one person is more responsible for the debt that does not involve the other spouse’s consent. For example, if your spouse has a gambling problem, the debt that incurred is not your responsibility, and you will not have to be responsible for that debt.
Just as with marital property and separate property, you can also have separate debt. This refers to debts that you acquired before the marriage. Any debts that incur during the marriage will be considered marital debt, with exceptions of gambling debts, expenses spent on extramarital affairs, and other debts that do not involve the other spouse. Differentiating separate debt from marital debt can be complicated as the line can be blurry. For instance, student loans can be treated as separate debt if they were used for one spouse’s education, but it can also be considered marital debt if the loans were used to support the household.
The Law Office of Judy Goldberg specializes in divorce mediation in CT. Get in touch today to see how we can help.
Why Secure Passwords Matter and How to Create Them
10 Ways to Celebrate International Women’s Day
Becoming a Great Podcast Host with Celeste Headlee
New Guiding Principles for Opportunity Zone Investors
Leaders: Do You Challenge Your Status Quo?
9 Marketing Trends That Will Dominate This Year
How To Keep Envy From Destroying Your Workplace
6 Tips to Help Your Journey to Retirement
Who Do You Sell to First
Business Owners Should Set 3 Types of Exit Goals
Forward-Looking Investing14 hours ago
Moat Investing: Powered by Morningstar
Market Strategist14 hours ago
We Are Not Convinced the Market Storm Has Completely Passed
Development14 hours ago
Advisors: How To Answer “What Do You Do?”
Markets1 day ago
Higher Mortgage Rates, Student Loans and Nike
Equities2 days ago
7 Stocks That Pay the Largest Dividends of All That Trade on Nasdaq – Or Do They?
Advisor2 days ago
The Wizards of Wall Street vs. The Selbees from Michigan
Markets3 days ago
The Chameleons Are on the Run
Compliance3 days ago
Regulators Focusing on How Firms Identify, Monitor and Test Custody Scenarios With Client Assets