All the debt that is incurred in the course of the marriage is marital debt.
Financial pressure is one of the common reasons for divorce. Often, when the partners are neck-deep in debt and find it difficult to make the ends meet they decide to end their marriage. They have to make a number of crucial decisions at that point. Some of the most important decisions are related to the finances and the division of property. It may be easy to divide the marital assets but the division of marital debt may be complicated. St. Louis divorce lawyer offers some advice on this issue.
What is Marital Debt
All the property including the real or personal property acquired in the course of the marriage is marital property. Similarly, all the debt that is incurred in the course of the marriage is marital debt.
During the divorce proceedings, both the partners have to disclose all their assets and liabilities. Each party has to inform the other one about his or her financial position. They have to identify the marital property and debt. They have to work together to decide how to divide the debt accumulated in the course of the marriage.
Things to Be Considered While Dividing the Marital Debt
At the time of divorce, the property acquired in the course of the marriage and the debt incurred throughout the duration of the marriage is divided by a mutual agreement between the two parties. The terms of the agreement are given in a marital settlement agreement. If the parties are not able to arrive at an agreement a family court judge decides how it has to be divided.
The following factors are taken into consideration while deciding each one’s share in the marital debt:
- The economic position of each partner at the time of the division of assets. The need to give the family home to a spouse who is going to look after the children. Or else, to give him the right to stay there for a certain period.
- The contribution of each partner in the acquisition of the property in the course of the marriage. This includes the contribution of a partner as a homemaker.
- The estimated value of the non-marital assets set apart for each partner.
- The behavior and actions of the parties in the course of the marriage.
- Which partner is going to take the custody of minor children, take care of them and look after their needs.
Rights and Obligations
When a person thinks of filing a divorce he must acquaint themselves with their rights, obligations, and responsibilities related to it. They should know on what grounds they can get a divorce and what decisions have to be taken regarding the custody of the children. If they are dissolving the marriage due to financial reasons they should make sure that they get the best deal after the divorce.
They should plan properly so that his money problems do not continue even after the divorce. They should make the best efforts to have a secure financial future. For this, they should gather sufficient information and seek professional help from a St. Louis divorce lawyer.
St. Louis Divorce Lawyer
At The Betz Law Firm, we are committed to guiding our clients through the court process with the same level of professionalism that we would wish for our own family members. We are aware of the trust our clients’ place in us with the future of their family and we strive daily to earn it.
Call us at (314) 801-8488 or fill out our online contact form to schedule a fre30-minutete phone consultation.