Divorces are never easy, and there are always things that need to be split, such as assets and debts. In Utah, joint debts are handled similarly to joint assets. This article will discuss what happens to our joint debts in a Utah divorce.
What are Joint Debts?
Joint debts are any debts that are acquired by both spouses during the marriage. These can include mortgage loans, car loans, credit card debts, or any other type of loan that both spouses took responsibility for. Even if only one spouse was on the loan, they could still be considered a joint debt if both individuals were responsible for making payments or received benefits from it.
Equitable Distribution
Utah is an equitable distribution state, which means that any property or debt acquired during the marriage must be divided in a fair and equitable manner. This doesn’t necessarily mean a 50/50 split, but rather a division that is fair and reasonable for both individuals. A judge will take into account numerous factors, such as the length of the marriage, each party’s income and assets, and the financial needs of each individual.
How Joint Debts are Divided
When it comes to dividing joint debts in a Utah divorce, the court will determine which debts are marital and which are separate. Marital debts are those that were acquired during the marriage, whereas separate debts are those that were acquired before or after the marriage.
Once the debts have been identified, the court will determine how much each spouse is responsible for paying. If both spouses are jointly liable, the court may divide the debt equally. However, if one spouse earns significantly more than the other, they may be assigned a higher percentage of the debt.
If one spouse is unable to pay their portion of the debt, the court can issue a judgment against them. This could result in wage garnishment or other legal penalties.
Protecting Yourself from Joint Debts
Ideally, spouses would work together to pay off their debts before a divorce occurs. However, this isn’t always possible. To protect yourself from joint debts during a divorce, there are a few things you can do.
First, close any joint credit accounts and open individual accounts in your name only. This will prevent your ex-spouse from racking up debt on joint accounts without your knowledge.
Second, consult with an attorney before finalizing any property settlement agreement. An attorney can review your agreement and ensure that it is fair and equitable. Additionally, they can help you negotiate a settlement that is in your best interest.
Conclusion
Dividing joint debts can be a complicated process, but with the help of an experienced attorney, you can navigate it with confidence. Remember, Utah is an equitable distribution state, so any debts acquired during the marriage must be divided fairly. By working together, spouses can ensure that they are protected from joint debts during and after their divorce.