The divorce process is never easy, especially when debt is involved. However, knowing what will happen to one’s finances during the divorce process can help with navigating the marital dissolution process. Here are a couple of important things to know about how debts are handled in a divorce in New York.
Distribution of debt during divorce
First, New York, like most other states, follows the equitable distribution principle. Based on this principle, a judge will determine the fairest, or most equitable, way of dividing a divorcing couple’s shared debts and assets. Debts and assets are not divided in the same way in every divorce case, as some spouses may have more debts than they do assets, and vice versa.
Second, if a person’s ex-spouse fails to keep up with his or her debt payments, then creditors might come after that person. This is possible even if the name of the innocent spouse is nowhere on the ex-spouse’s account. In this situation, the innocent spouse may have to pay the debt of the ex-spouse and then maintain proof of the payments. Afterward, he or she may ask the family court for help with securing reimbursement from the ex-spouse.
How an attorney can help
Navigating the financial aspect of divorce can understandably be confusing, stressful and overwhelming. However, an attorney in New York can help a divorcing individual to pursue a fair and comprehensive settlement with the other party through an out-of-court settlement process, such as meditation. The attorney will make sure that his or her client’s rights and best interests are protected every step of the way.