Dividing assets is one of the most challenging areas of the divorce process, as two divorcing individuals may not see eye to eye on how to split their assets. However, dividing debts can be just as difficult, if not more so, and it understandably is a lot less enjoyable. A couple of tips might help individuals in New Jersey to address debts properly during this type of family law proceeding.
Two divorcing individuals have to determine which party owes what. They can agree to go ahead and pay off these debts, possibly by selling the family home and using the profits to cover what they owe. In addition, one person may agree to assume a certain liability in exchange for another asset during the property division process.
The two individuals may also decide to share their debts equally if they wish to do this. A lot of this really depends on the way in which assets are split as well as how much or little the two parties get along. Their respective resources also play a role in how they approach the division of debts.
Divorce can be tough to navigate from both a financial and an emotional point of view. However, knowing one's rights improves one's chances of pursuing a settlement that is ultimately in one's best financial interest. Proper legal guidance may help New Jersey individuals going through this type of family law proceeding to tackle debt division through negotiation or mediation, for example, which enables them to avoid further court intrusion.
Source: goodmenproject.com, "4 Top Money Issues In Divorce", Colin Amos, Oct. 24, 2016