How does your marital debt impact your divorce?

by Peter M. Solomon on Aug. 02, 2021

Divorce & Family Law 

Summary: What Happens to Debt during a Divorce.

On Behalf of Solomon Law Firm | Dec 11, 2020 | Firm News

New Hampshire divorces usually fall into two categories. Some couples file for uncontested divorces. They might have a prenuptial or postnuptial agreement that makes splitting their property simple. They may also have gone through mediation or negotiated before filing for divorce.

Other couples will file contested divorce proceedings. In a contested divorce, the couple relies on the courts to make decisions about how to split up their property and how to share custody of their children. What impact will your debt have on your divorce proceedings in a contested divorce?

Do the family courts divide debt in a divorce?

When the New Hampshire family courts review your circumstances to determine how best to split up your marital property, your debts will play a role. New Hampshire judges apply the equitable distribution standard to divorce proceedings.

Debts incurred to support the family, ranging from student loan debt to credit card debt, could get divided. Individual debts, including debt hidden by one spouse or accrued during an affair, likely won’t get split up between spouses.

Who gets most of the debt in a divorce?

Like with the property the courts divide, there are many ways to split up debt. A judge could give one spouse a lot more property and then more debt as well. They could also evenly split the debt and marital property between both spouses.

The circumstances of your marriage will influence the decisions a judge makes. Child custody and earning potential can also impact property division. Having an accurate record of your finances marital debt will help you push for fairness in your divorce.

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