Most people who file for a divorce will have their minds on their assets, but it’s equally important to pay attention to how any existing debt will be divided, as these will also affect the couple’s net worth, explains renowned Colorado Spring law firm Marrison Family Law.
A key section of divorce judgment involves the court dividing both the couple’s assets and debts. The court will generally do its best to divide these equally, declaring which party will be responsible for paying which bills. But this may also mean one spouse receiving more property might be assigned to take care or more debt.
It should be mentioned that laws for the division of assets and debts vary per state, with some considering the assets and debts brought into the marriage. In such states where community property is enforced, every property and liability in the marriage is owned equally. (Note that Colorado is not a community party state, so such does not apply.)
In any case, debt will add complexity to divorce, something that just increases stress and results in the undue need for communication between ex-spouses trying to separate. Therefore, it’s best to clear one’s debts before or during the divorce proceedings. One would do well to examine every bill and financial statement, ensuring that a clear picture of his or her financial situation is established, advises Marrison Family Law.
Marrison Family Law is the largest, exclusively family law-focused legal firm in Colorado Spring. For over 25 years, it has been offering legal services to people going through the difficult process of divorce. More on the firm’s team of experienced lawyers and the various services they offer here.