Going through a divorce with debt can be very stressful. If you are in this situation, our legal team can help. Give our skilled Newburgh bankruptcy lawyer a call today to discuss your options.
Does the debt have to be split between both divorcing parties?
If you are unsure about how debt should be divided when going through a divorce, it is essential to recognize that it will go through the same process as dividing assets. When it comes to dividing a divorcing couple’s assets, the process of equitable distribution is utilized by New York courts. Recognize that equitable distribution does not imply that the debt will be split equally, instead, it will be divided equitably. If you are going through a divorce with debt, you should not anticipate an even split. The court will take the below factors into consideration when determining the equitable distribution of a couple’s debt:
- The length of the marriage
- The income of each party
- The health of each spouse
- The age of each spouse
- The value of your marital assets
- The amount of debt the couple has
- The earning capacity of the couple
- The standard of living that the couple is accustomed to
- The monetary and non-monetary contribution each party has made to the marriage
It is in your best interest to reach out to our skilled New York bankruptcy firm today if you have questions concerning how a court might separate you and your partner’s debt. With the help of our experienced legal team, you will be able to discuss your options and determine the best choice for you. Reach out to us today to examine the details of your case today.
Should I be filing for bankruptcy with my partner during our divorce?
If you and your spouse are on good terms, you may want to consider your options for filing for bankruptcy together. If you choose this path, you may lower the risk of competition in a divorce. For example, rather than having a fight over who will pay off the credit cards, a chapter 7 discharge can make issues that are irrelevant. Some of the other benefits of filing jointly can involve lowered case costs because you will have one instead of two shared costs since each party will be contributing to the attorney’s fees and court filing fees, lowering some possible conflict, and speeding up both parties’ financial new beginnings.
Do not wait to give our firm a call today to examine your options with a qualified attorney if you are going through a divorce with debt and would like to learn more about filing for bankruptcy. With the help of our dedicated legal team, you can feel more comfortable knowing that your case is being taken care of.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.