How is debt division resolved in a divorce?
Divorce is a very difficult process emotionally, but financial issues can make the process even more stressful. During economic downturns, we find that many of our clients are insolvent, meaning they have more debts than assets. Many clients are facing foreclosures on their family homes or are at various stages of default on their financial obligations. You will have many questions about what happens if the family home is foreclosed while the divorce is pending or who will be liable for any remaining debt. Enlist the services of a skilled attorney to represent you in all matters of debt division to avoid having to assume an unfair share of the community debt or separate debt of your spouse.
Debt Before and During Marriage
Debt division is generally handled in a similar manner to property division. As a rule, debt pre-existing the marriage remains the responsibility of the spouse who acquired it. Debt incurred in the course of a marriage may be split evenly, or in other proportions as a means to balance out the fairness of overall property and debt allocation. Sometimes the longer a marriage endured for and the more investments there were, the further tied up the finances of a couple can become. It is critical to trace the debt source in determining who should be responsible for assuming a debt.
At Blair & Kim, PLLC, we know and understand that during tough economic times, debts are all that some divorcing spouses have to divide. We can organize your case to show why the debt was not your original responsibility, and why you should not be held responsible for it after your marriage has been dissolved. We have extensive experience in all aspects of family law, and have helped many clients throughout Seattle to avoid accountability for debts incurred by the other spouse.