Minneapolis Divorce Lawyer Keys To Dividing Debt In A Divorce
For Starters, the Court, in what is called a just and equitable manner
, is responsible for deciding on the division of debt between married couples that are going through a divorce. If someone uses a credit card to pay for household items, and their spouses name is not on the credit card, it doesnt mean they cannot hold both parties responsible for that debt and assign a portion to each spouse. Such a debt owed to a credit card company would likely be treated as marital debt. Since the assignment of debt has to be just and equitable, the Court reserves the authority and the power to allocate debt in an unequal manner (e.g. if one spouse is financially more able to afford the debt, the Court can assign more of the debt to that party).
During the Divorce, and sometimes even prior to the Divorce proceedings commencing, it is a good idea to obtain a written credit report to make sure that the debt that it discloses will be accounted for in the Divorce Decree. A spouse can also request and obtain the written credit report of the other spouse (e.g. during the Discovery process) so that all debt can be addressed in the proper proceeding.
An award of property and assignment of debt can be offset against each other. In other words, a party can be assigned an unequal amount of debt, provided that he or she is also awarded an unequal amount of assets to equalize the final property award.
Relative to marital debt, it is also important to know that although the Court has the ability to assign debt justly and equitably (notwithstanding whose name the debt is under), the creditor will still be able to, and has the power to, pursue the party named on the debt. As such, it is extremely important to get good legal advice and a solid strategic plan to deal with debt.
by: Evain Rochx
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