How are assets and debt divided in a divorce?
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How are assets and debt divided in a divorce?
As part of the divorce judgment, the court will divide the couple’s debts and assets. The court will indicate which party is responsible for paying which bills while dividing property and money. Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another.
Does debt affect alimony?
Some judges may determine that only the person that took out the loan must repay it. Others will split the debt and change alimony payments accordingly. The complication may affect the decision of the court and the future support to the spouse with the loan.
Is a wife responsible for deceased husband’s debts?
In most cases you will not be responsible to pay off your deceased spouse’s debts. As a general rule, no one else is obligated to pay the debt of a person who has died. If there is a joint account holder on a credit card, the joint account holder owes the debt.
Who is responsible for debt after divorce?
When you get a divorce, you are still responsible for any debt in your name. That means that if you and your spouse had a joint credit card, you are just as liable for that debt as your spouse. But the details of how that debt is handled can vary a bit depending on the state you live in.
