Property division is on the mind of nearly every person getting or contemplating a divorce. Even over the course of a relatively short marriage, there are often quite a few possessions that have been accumulated, and it can be very difficult to think about your things being divided by the court. While many people focus on the high-value assets, such as cars or the house, or items with particular sentimental meaning, it’s also important to understand that debt is also part of the property division process.
Just like any income and assets that have been accumulated during the marriage are generally considered marital property even if only one person’s name is on the item, debt is also considered martial debt if it was accumulated during the course of the marriage. This means that any debts that were part of the family finances or for furthering the family’s best interests are likely up for division.
Common debts considered martial debt include credit cards opened during the marriage or that were used to buy marital property such as the house furnishing or Christmas presents for the kids, business loans and liens. In some cases, even student loans may be considered part of the marital debt if the education was to further the career of one party so that they could increase the family income.
Debt division can be very complicated, and it’s important to make sure that you do everything you can to ensure the settlement is appropriate and your ex is paying his or her share of the martial debts. If you have questions about this process or how a certain debt may be handled by the courts, we can help. Please visit our webpage on property division during a divorce to learn more.