Married individuals often acquire joint debts and liabilities during the course of their marriage. As part of a dissolution of marriage proceeding, those liabilities must be split, much like property and assets. If you are dividing liabilities in Hartford as part of a divorce, it is important to understand how the process works.
A property division attorney skilled in this area could walk you through the process and help you to gather the necessary documentation to ensure the issue of joint liabilities is fully resolved as part of the divorce.
Liabilities are anything that one spouse is liable for paying, which typically include debts or contracts that keep them bound to any potential losses stemming from that contract. When parties are getting divorced, their liabilities often consist of a combination of the following:
An attorney in Hartford could analyze a couple’s finances, liabilities, and debts to help simplify the process of dividing them.
While there are a variety of financial circumstances that a divorcing couple may have to consider when dealing with their liabilities, two common debts include the following:
In the case of jointly owned real estate, one spouse often seeks to retain the property following the divorce. As part of that process, it is important that provisions are drafted to put in place court orders requiring the party retaining the real estate to refinance the property in order to remove the other party’s name from the mortgage, and in certain cases in order to pay out the other party’s share of the equity. If the party is unable to accomplish the refinance within a designated period of time, a court will retain jurisdiction to enter subsequent orders requiring the property be sold so the other party may be relieved from the liability.
After the parties have disclosed their liabilities and debts, a seasoned attorney can analyze the underlying financial statements to determine who incurred the debt and for what purpose. Further, they can then seek to establish whether equity demands the parties equally share responsibility for the debts incurred or if one party should be required to assume the debt solely in their name.
A property settlement agreement is the part of the divorce judgment that dictates how assets are being divided and the method for accomplishing the transfer of title to property. Where there is outstanding debt that both parties are liable on, especially debt attached to property being divided, the divorce judgment should include language designating responsibility for the debt, and the obligation for the party retaining the debt to indemnify the other against any damages or liability associated with that debt.
You should not have to navigate the process of dividing liabilities in Hartford on your own. Legal assistance may be beneficial to ensure you are being treated equitably and that your financial future is secure.
Call today to schedule a consultation to discuss your case and your options.