Somerset County Asset Division Lawyers

Dividing Marital Debts Fairly in Divorce

In general, courts consider both the property rights and financial obligations of the marriage when deciding issues of equitable distribution in divorce cases.

Generally, debts that the couple incurs during the marriage are characterized as marital debts that are subject to equitable division in a divorce. In contrast, liabilities that a party incurs before getting married are treated as their separate nonmarital debt and are not necessarily allocated between the parties.

Marital debts may apply to the total value of all marital property when determining an equitable distribution of assets and liabilities. Alternatively, New Jersey courts can allocate debts separately, resulting in a reduced property award.

Deciding the Fate of Your Home in Divorce

If your matter proceeds to trial, the Court will order the house to be sold. Often, people wish to try and purchase their husband’s or wife’s equity in the home. This is often referred to as a “buyout.” However, if a house was purchased before the marriage or inherited, this may impact whether or not the home is subject to be divided.

Impact of Bankruptcy on Marital Debt Division

When a person files for bankruptcy, they may be entitled to have certain debts discharged, even if the party to whom the debt was owed hasn’t received a dime from the petitioner. Furthermore, filing for bankruptcy halts lawsuits for the collection of certain liabilities.

However, the federal bankruptcy code recognizes exceptions to bankruptcy relief in family cases, including:

• Paternity cases
• Spousal and child support matters
• Child custody and visitation actions
• Domestic violence proceedings
• Proceedings concerning the collection of spousal or child support
• Enforcement actions regarding the collection of spousal or child support

However, bankruptcy does apply to divorce proceedings concerning the equitable distribution of marital debts and liabilities. The exceptions to bankruptcy belief indicate federal public policy emphasizing the importance of domestic support obligations, as those matters involve a person’s legal duty to provide for the financial welfare of their children and spouses. As a result, bankruptcy will not relieve a person of such responsibilities.

Conversely, property division issues in a divorce proceeding are subject to bankruptcy relief. This is because marital debts typically involve repayment obligations that arise from contractual obligations rather than legal ones.

Comprehensive Asset Division Services Across Central NJ

One step in the divorce process is the division of marital assets, such as real estate, bank accounts, investments, pensions, IRAs, 401ks and other retirement assets, personal property, and business interests. Not all assets are always obvious or disclosed.

For these and other reasons, you should consult with the experienced Central New Jersey asset division lawyers at our firm regarding complex issues including valuation, division, and distribution of:

• Retirement assets — Pension plans, 401(k) plans, 403(b) plans and IRA accounts
• Investments — Securities, stocks and stock options, investments, bonds, mutual funds, and other portfolio holdings
• Real property — Your home, vacation homes, timeshares, investment properties, land, and other real estate
• Personal property — Jewelry, artwork, cars, and other tangible property acquired during the marriage
• Complex professional and business interests
• Debts and liabilities

The legal team at Lane & Lane, LLC exclusively practices divorce and family law. Between our 60 years of shared experience, we have handled all types of complex divorce issues. When dealing with high-value assets like real estate, cars, businesses, and jewelry, it is important that you have a lawyer with experience in finances looking out for you. Our team has extensive experience in high-net-worth divorce and divorce for business owners. Many unexpected issues are sure to come up in these types of cases. Our team knows how to anticipate problems and address them efficiently so that they do not drag the process out any longer than it needs to be.

Contact Somerset County's Trusted Asset Division Lawyers Today

To schedule a consultation with our asset division attorneys in Somerset County, contact us online or call (908) 259-6673.