Scott Law Blog

Debt Division and Divorce

It is not simply assets like the marital home that are divided during a divorce, all of the marital debts are divided in an Anthem Divorce case. There are two common ways in which you can divide the debts of a marriage. The first option is to satisfy the debt jointly before even filing for divorce. The second option is arriving at an agreement where each spouse takes the responsibility of paying back a part of the debt.

 

The problem with the second option is that a spouse may not respect the agreement that is entered.  The spouse who has taken the loan is then left with no option but to pay the debt himself/herself or to seek the assistance of the court. Keep in mind that your lenders will not take into consideration the fact that you are now divorced and will just demand the money back. 

 

Not all debts are divided during divorce. Oftentimes debt incurred to enhance one parties career, such as college courses or trade schools, will be deemed the debt of the person receiving the benefit of that debt.  Debts incurred prior to the marriage will not be divided in the divorce as they are considered the sole and separate debt of the incurring party.  In addition, debts incurred from the date of serving the divorce petition are typically considered to be the responsibility of the person incurring the debt.  Your Desert Ridge Divorce Attorney should be sure to consider these debt issues during an in-court or out-of-court divorce settlement.

 

Arizona is a community property state, which means that you are presumed to be responsible for the debt incurred during the marriage regardless of whose name the debt is in. For instance, you become responsible for your home mortgage even if your name is not on it.  Despite the presumption of joint debt responsibility in a community property state, the Court can consider evidence to the contrary.  For assistance with such complex debt issues, you need the help of an Anthem Divorce Attorney who is experienced in community property laws.  Contact Scott Law Offices for more information.

 

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