If you are going through a divorce with debt, you will want to have your options laid out for you. Reach out to our firm today to speak with one of our skilled New York bankruptcy attorneys about the specifics of your case and what your best course of action is.
How should debt be divided in New York during a divorce?
Dividing debt goes through the same process as dividing assets. When it comes to dividing a couple’s assets, the process of equitable distribution is used in New York courts. It is important to note that equitable distribution does not mean that the debt will be divided equally, but rather that it will be divided fairly. If you are going through a divorce with debt, you should not expect a perfect split. The court will take the following factors into account when determining the equitable distribution of a couple’s debt:
- The age of each spouse
- The income of each party
- The health of each spouse
- The length of the marriage
- 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
If you have questions concerning how a court might divide you and your partner’s debt, it is in your best interest to reach out to our skilled New York bankruptcy firm today to speak with our dedicated legal team about the specifics of your case.
Should a divorcing couple file bankruptcy together or apart?
If you are on cordial terms with your spouse, you may want to consider filing for bankruptcy together. By doing this, you may reduce the risk of conflict in a divorce. For instance, instead of having a couple fight over who will pay off the credit cards, a chapter 7 discharge can make issues like that irrelevant. Some of the other advantages of filing together can involve reduced case costs because you will have one and not two, shared costs since each party will be contributing to the attorney’s fees and court filing fees, reducing some potential conflict, and speeding up both parties’ financial fresh starts.
If you are going through a divorce with debt and would like to learn more about filing for bankruptcy in this situation, our legal team is prepared to help you through the process. Do not wait to reach out to our firm today to discuss your options.
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.