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Division of Liabilities in East Brunswick

The division of liabilities in East Brunswick is a complicated process. Liabilities in divorce law would include mortgages on a persons' home, an apartment, condo, a business, long-term debt, revolving charges, short-term debt, and contingent liabilities. Also included are credit card debt, car payments, student loans, and mortgages on the home. An experienced property division attorney could help protect an individual and pursue a positive outcome for them.

Dividing Debt in Divorce Cases

The way that division of liabilities in East Brunswick is handled depends on who incurred the debt, i.e., individual debt, pre-marital debt, or marital debt. A Home Depot credit card, for example, in both parties' names (or even one party's name) that was used to make improvements on the home would be the responsibility of both parties to pay.

On the other hand, a gambling debt that one party had that the other party possibly knew nothing about, and which may have spurred the divorce, is going to be the responsibility of the one party who made the debt. Student loans incurred prior to getting married would be the responsibility of that party. It depends on the principles of equity and the global settlement as well. If one party is more financially superior than the other party, they might give more towards the debt of the parties rather than having an increase in the amount of money.

How Mortgages Are Handled When Dividing Property

The way that mortgages are handled when it comes to dividing property depends on who would get the property and who would receive the title to the property. If parties are dealing with the marital home and there is a mortgage on the marital home, it is not unheard of that the parties would continue to reside together until the divorce was final. The title of that home would need to be transferred into whoever is going to remain in the marital home and once that title is transferred, they need to get the mortgage out of the other party's name, and they will receive their equity interest in the home.

Division of Shared Insurance Policies

Shared insurance policies would only be divided in the course of the divorce. If one spouse has the other spouse under their health insurance, once that divorce is finalized, they can no longer carry their spouse under their health insurance. This is a huge financial consideration when people are getting divorced. Car and other insurance policies would have to be separate as well.

Student Loan Payments

A popular question is whether the division of liabilities in East Brunswick also extends to student loan payments, especially if both parties are paying for one party’s loans. It does depend on the situation of the parties, but usually if loans that were incurred prior to the marriage, the spouse that has been helping to pay the loan would not necessarily have to continue to pay those loans. There might be a term in the Global Settlement Agreement that the parties agree to. Normally, whoever incurred the debt would have to pay it off unless it is a credit card used to make capital improvements to their home; the other spouse is receiving a benefit from the increased equity/value of the home. A student loan would be the spouse's responsibility of whoever incurred the debt.

The party with the student loans would not necessarily have to pay back their former spouse. Absent any written agreement between the parties, it would be considered just a very generous gift from the other spouse.