Different Types Of Marital Debts
Some individuals find that initial talks with their spouse about finances and divorce are focused on assets. For example, you and your spouse may be discussing who will take ownership of the marital home or how investment announcements will be distributed. While this is an important part of the financial discussion, debts will also need to be dealt with as well.
If you find you and your spouse are in agreement about how assets will be divided but are arguing over who is responsible for paying off or taking ownership of debts, discuss your full financial picture with an experienced Orlando divorce lawyer. The beginnings of an agreement can lead to a final resolution when the parties involved are open to negotiation.
Difference Debts and Possible Solutions
For many couples choosing to end a marriage, equitable distribution does not mean every debt will be divided 50-50. That could be the case for some, but every situation needs to be analyzed on its own. For example, if one person has a higher income and access to more financial resources, it could be determined that an equitable split will have them taking responsibility for a larger portion of the debt load.
Common marital debts:
- Medical bills
- Student loans
- Car loans
- RV or boat debts
- Credit card balances
- Business debts
How mortgages will be handled could be connected to who will take ownership of the property. This could be the appropriate solution for boat or car debts as well. But there are situations in which disputes arise over all of the debts, including student loans and credit card balances.
Defining Your Objectives
Sometimes, the path to the best resolution for you is directly related to your goals, not to a cookie cutter solution. There may be debts you are comfortable taking ownership for because you will be retaining the related possession. For example, if it is your objective to keep the marital home but you do not have enough liquid funds to pay your spouse for their portion, you could agree to take on debt in lieu of a payout. This is not appropriate in all situations, it is simply an illustration of assessing all assets and debts that can lead to an agreement that benefits all pirates.
Discuss your situation and goals with an Orlando divorce lawyer. It is great when spouses agree on broad terms, but if you run into areas of dispute, know that leaning on a legal professional for help is a way to smooth the process. Plus, you may be introduced to a resolution option you hadn’t considered before.
Do you have questions about how your marital debts will be handled? If you and your spouse are open to negotiations, a collaborative divorce could be possible. Share the details of your situation with the knowledgeable family law attorneys at the Donna Hung Law Group. Our attorneys will carefully listen to the details of your case. Then, they can determine the best path forward. Call 407-999-0099 or contact us online to schedule an initial evaluation.