Debt and Divorce; Who is Responsible?

Contact a Staten Island Divorce Attorney Divorce case. All debt incurred by husband and wife during the Course of the marriage constitutes marital debt. Debt incurred prior to the marriage is the responsibility of the person who incurred the debt.

How is marital debt actually divided in New York? That is a very difficult and complicated question. There is no clear answer. The answer can only be determined by analytical reasoning. As a practical matter, assignment of marital debt is usually negotiated by the parties during the course of the divorce without the necessity of a trial. This article should be used for informational purposes only and not as a substitute for obtaining a Staten Island Divorce lawyer. Judges tend to look at the following factors when determining assignment of marital debt:

1) The court looks at whether the debt was incurred in furtherance of the Marital Partnership. Marriage is a partnership. If the debt was used for home goods, groceries, clothes, family vacations, medical bills etc. then the Court is more likely to divide the debt equitably between the parties.

If the debt was incurred by either husband or wife in furtherance of his or her own agenda then the debt is more likely to be assigned to the person who incurred the debt. For example, gambling debt, debt used in furtherance of an affair or unreasonable debt incurred without the consent of the other spouse is more likely to be assigned to the person who incurred the debt. This type of debt is theoretically "marital debt" although it is inequitable for the other spouse to have to pay. For example, gambling debt should be paid by the spouse who lost the money at the casino.

2) Who will have title and / or possession of the goods or items for which the debt was incurred? This is a significant factor. If the husband purchased a flat screen television on his Mastercard and he will get the flat screen then it is more likely that he will be assigned that debt.

The person who is assigned the vehicle/ boat will usually be responsible for the debt which secures the automobile / car / boat. As far as real estate is concerned, the person who is assigned the real estate will usually be responsible to pay the mortgage, taxes and insurance for the property. This can get more complicated if a home equity line was used to purchase an asset which will be titled in the name of the spouse who is not assigned the real estate.