Introduction
Divorce often brings about significant changes and challenges. One such challenge is the division of property and debts acquired during the marriage. If you and your spouse have joint debts, you may be wondering about the implications of these debts in a divorce. To shed light on this matter, this article will provide an overview of joint debts in a Nebraska divorce.
What are Joint Debts?
Joint debts refer to the debts that you and your spouse have assumed together as a married couple. Examples of joint debts include a mortgage, a car loan, accumulated credit card debt, student loans, and personal loans. Essentially, any financial obligations that you both share fall under the category of joint debts.
When you enter into a joint debt, both you and your spouse bear equal responsibility for repayment. If either one of you becomes unable to fulfill your share of the debt, the other spouse remains liable for the entire amount owed.
Division of Property and Debts in Nebraska
In Nebraska, the division of marital property and debts follows the principle of equitable distribution. This means that the court aims to divide property and debts in a manner that is fair, although not necessarily equal.
When considering joint debts, the court will take several factors into account. These may include the respective incomes and earning potentials of each spouse, the extent to which each spouse contributed to the creation of the debt, and the purpose of the incurred debt.
Responsibility for Joint Debts
In a Nebraska divorce, both spouses bear responsibility for joint debts. Consequently, if one spouse fails to make the necessary payments on a joint debt, the creditor can pursue the other spouse to recover the entire outstanding amount.
Even if the court assigns a particular joint debt to one spouse, it is important to note that the other spouse may still be held responsible for repayment if the assigned spouse fails to fulfill their obligation.
Creditors and Debt Collection
It is essential to recognize that divorce does not alter the rights of creditors. If you and your spouse share joint debts, the creditor retains the ability to go after both of you for the entire amount owed, irrespective of any assignment of responsibility ordered by the court.
If you have concerns about debt collection, seeking guidance from a financial advisor or attorney may prove beneficial in navigating through this complex situation.
Conclusion
The division of joint debts in a Nebraska divorce can present intricate challenges. It is crucial to have a clear understanding of your rights and responsibilities concerning joint debts while engaging the assistance of an experienced attorney who can guide you through the legal process. By doing so, you can efficiently navigate the complexities associated with joint debts and ensure a smoother transition into your post-divorce financial life.