Protecting Your Financial Interests While Dividing Debt During a Divorce
During the divorce process, you won’t just be dividing your assets, you’ll also be dividing your debts. Dividing debts can be one of the most challenging aspects of divorce. For Pennsylvania couples seeking a no-fault divorce, understanding how to protect your finances during the debt division process is critical. You could be facing a mountain of shared credit card debt or resolving disputes over a joint mortgage. The goal, nonetheless, is to safeguard your financial well-being and your peace of mind. In this article, the Philadelphia divorce lawyers at the Law Offices of Lauren H. Kane will discuss the debt division phase of divorce and how to protect your interests when dividing marital debt.
What is the debt division process in a no-fault divorce?
The division of marital debt determines which party is responsible for paying off the debts accrued during the marriage. Pennsylvania follows the principle of “equitable distribution,” meaning that the division of marital property is based on what the court considers “fair” rather than an automatic 50/50 split.
A no-fault divorce assumes no wrongdoing by either party. Instead, the couple can focus on dividing responsibilities based on factors like income, marital contribution, and financial needs. Understanding how these principles apply to marital and non-marital debt is crucial. Marital debt includes all debt that was incurred during the marriage. Non-marital debt is debt that was accrued before the marriage or after separation. If both parties can agree, you can avoid having the court make these decisions for you. Knowing your options is essential to making an informed decision.
What factors does Pennsylvania consider when dividing debt?
When dividing debt in Pennsylvania, the court will consider several factors. These include:
- Length of the marriage – Longer marriages tend to result in a more balanced division since both partners typically contribute to the accumulation of marital debts. For shorter marriages, however, the court may assign more responsibility to the individual who incurred the debt.
- Earning potential – If one spouse earns considerably more than the other, it may result in them taking on a greater share of the marital debt responsibility.
- Custody and parenting roles – If one spouse is granted primary custody, the court may reduce their obligation to pay off marital debt considering that the higher financial burden will be on them in terms of raising the children.
- Purpose of the debt – Debts incurred on behalf of the family are more likely to be split 50/50. This includes medical debt or debt accrued for home renovations. However, debts that were incurred by one spouse making a luxury purchase might remain their sole responsibility.
- Health and age – Courts will also consider one party’s health and proximity to retirement when assigning marital debt. A spouse facing medical concerns may assume less of the financial burden.
Understanding these factors can help you better anticipate how your debts will be divided in your divorce.
Talk to a Philadelphia, PA, Divorce Lawyer Today
The Law Offices of Lauren H. Kane represent the interests of Philadelphia residents who are going through divorce. Call our Philadelphia family lawyers today to schedule an appointment, and we can begin addressing your concerns right away.
