A divorce brings many changes to the lives of both spouses and their family members. Besides issues like child custody, spousal support and the division of assets, there’s often a need to determine who is responsible for the debt accumulated during the marriage.
In some situations, a prenuptial arrangement dictates the debt repayment obligations of each party. In other cases, a couple can reach a peaceful settlement regarding who assumes the marital debt. However, attaining an agreement can be challenging if the former partners aren’t getting along. Enlisting the services of an experienced marital attorney can help ensure your interests are represented and protected.
Schedule a ConsultationMarital debt refers to any financial obligations acquired during the marriage. Typical examples include:
Generally, any arrangements entered into before the marriage are not considered marital debt in Pennsylvania. For example, if one party took out a student loan before the couple married, the other party would not be responsible for the obligation after a divorce.
Also, it typically does not matter whose name is on the debt or who entered into the financial arrangement initially. The court views it as a shared obligation if it commenced during the marriage.
Pennsylvania is an equal distribution state, meaning the court will attempt to divide the marital debt equitably and fairly. This concept doesn’t necessarily mean that each party is responsible for 50% of the debt. The court reviews each situation individually to determine the most appropriate debt distribution.
In a typical scenario, the judge will review each debt and evaluate several factors when determining who is responsible for it. Examples include:
In a situation where one party earns a substantially higher income than the other, for instance, the individual with the greater income may need to shoulder a significantly larger portion of the debt load.
However, when the judge assigns a debt to one spouse, it doesn’t mean that the other is absolved of accountability. For instance, if a party defaults on a car loan, the other must assume the payments to avoid the negative credit implications.
Because creditors are not bound by the court’s order, the party who wasn’t assigned the debt should take steps with the creditor to get their name removed from the debt.
If debt negotiation is a viable option for your situation, a marital debt attorney can help develop a winning strategy that may minimize your obligation. Your lawyer will assist you in determining your priorities and finding ways to ensure your short- and long-term financial stability.
Whether you’re attempting to negotiate a debt settlement arrangement with your partner or need help protecting your interests during the debt distribution process, Buzgon Davis Law Offices can serve as your trusted advocate in Lebanon, Pennsylvania and the surrounding areas.
Learn more about your legal debt marital options by contacting us today. Call us or return the contact form to request a consultation.
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