A divorce is not only an emotional process but also a legal one that involves the division of assets, liabilities, and property between two spouses. Among the key issues that require resolution during a divorce is the division of debts. Couples facing a divorce in Nebraska, like in other states, must adhere to state laws and develop a divorce agreement to address this matter.
Measuring the Fair Distribution of Marital Assets and Debt
In Nebraska, the principle of equitable distribution governs the division of marital property and debt. This means that the court aims to distribute these assets and liabilities fairly, rather than equally. In other words, the judge takes into consideration what is just and reasonable in each particular case.
To determine how assets and debts should be divided, Nebraska courts consider several factors, including:
- The length of the marriage
- Each spouse’s contribution to acquiring marital property
- Each spouse’s contribution to the family’s income and well-being
- The financial outlook for each spouse after the divorce
- The custody arrangement and child support obligations if children are involved
To ensure a fair distribution, these factors are weighed carefully, taking into account the unique circumstances of each case.
Differentiating Marital Debt from Non-Marital Debt
Separating marital debt from non-marital debt is a crucial step in dividing debts during a divorce. However, this can be challenging, especially if both spouses combined their debts during the marriage. Generally, marital debt refers to debts incurred during the marriage, benefiting both spouses or their children.
Nevertheless, exceptions do exist. For example, debts incurred before the marriage or debts for illegal purposes may be classified differently. Once the marital debts are identified, the court will allocate them in the divorce agreement.
Joint Debt and Individual Liability
When spouses share a joint debt, the account holder is held responsible for the entire amount. This means that even if the divorcing spouses agree to divide joint debts in their divorce agreement, creditors still have the right to pursue both spouses for the full debt. It is crucial, therefore, to communicate with creditors and consider removing one spouse’s name from the debt.
Additionally, it is advisable to include terms in the divorce agreement that ensure the responsible spouse will take on the responsibility of paying off the debt, thereby protecting the other spouse from any financial liability.
The Nuances of Credit Card Debt Division
Credit card debt often emerges as a significant concern during divorce proceedings. In Nebraska, if credit card debt was accumulated during the marriage, it is considered marital debt. However, if only one spouse holds the credit card account while the other is merely an authorized user, the authorized user is not obligated to pay off the debt.
On the other hand, if both spouses used the same credit card account, both parties will be accountable for repaying the incurred debt. In these instances, the divorce agreement will outline the specific division of the debt.
In Conclusion
Navigating the complexities of debt division during a divorce can be overwhelming. It is imperative to seek guidance from an experienced Nebraska family law attorney who can help you navigate this process successfully. A knowledgeable attorney will strive to protect your rights and interests throughout the divorce proceedings, ensuring a fair and favorable resolution.