If you are getting divorced, you likely have a lot of questions about your finances. Read on to learn more about some of the most commonly asked questions:
How is Debt Divided During a Divorce?
New York uses the process of equitable distribution when it comes to diving a couple’s assets. The same is true when it comes to debt. Equitable distribution means that the debt will not necessarily be divided equally, but it will be divided fairly. As a result, you should not necessarily expect a 50/50 split. Instead, a court will take the following factors into account:
- 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
Should We File For Bankruptcy Together?
If you and your spouse are on speaking terms, it may be a good idea to file for bankruptcy together. This may be a good way to reduce the conflict in a divorce. For example, rather than fighting over who pays off the credit cards, a chapter 7 discharge can make issues like that irrelevant. Some of the other benefits of filing together can include reduced case costs as you will have one case instead of two, shared costs since each party will be contributing to the attorney’s fees and court filing fees, eliminating some potential conflict, and speeding up both parties’ financial fresh starts.
If you are getting divorced and you have any questions about filing for bankruptcy or how debt will be divided in the event of a divorce, contact our firm today. We are here to walk you through the process every step of the way.
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.