Who gets the home after a marriage comes to an end? Who will hold onto
the family car? What about the business and savings accounts?
Property division can raise more questions and concerns than nearly any other aspect of
divorce, and understandably so. Your assets might be what defines the stability
of your future. But what many divorcés overlook while they fight
over property is what could be called the opposite of property: debt.
What Happens to Marital Debt?
A family law court will view your marital debt as marital property. What
this means is that if you and your spouse accrued that debt while you
were married, it still belongs to both of you and will be subject to equitable
distribution, or what is considered fair by the court. If you don’t
want to end up with an inordinate amount of debt for which you really
don’t feel responsible, you will need to convince the court that
it would not be fair for you to get it.
Keeping Records to Keep Just Your Share
Just as with physical property and assets you actually want, you can use
evidence, proof, and records to claim or disclaims portions of your debt.
Have you been prudent with your recordkeeping and bookkeeping? If so,
you might be able to show that your ex-spouse’s private expenditures
added to most of your marital debt.
For example: Your spouse bought a motorcycle you do not like and never ride; why should
that be part of your debt?
You can also use financial records to show what debt should be considered
separate property based on the fact that it existed before the marriage.
Perhaps your spouse was already in debt due to a failed business expenditure
that occurred before you even met? The discovery process should reveal
those facts, if you know where to look.
As strange as it might seem, debt in divorce is handled as property, but
now it is property neither of you want. To increase your chances of only
receiving debt responsibilities that are fair, you should work with The
Moodie Law Firm and our Denver divorce attorney. Dial
request a consultation with our team.