In the divorce process, many issues need to be resolved. Often asset division and debt allocation can be among the most contentious. Divorcing parties have assets that include personal property items such as cars, furniture, electronics, family pictures, jewelry, etc. They also have financial assets such as savings accounts, retirement accounts, and life insurance proceeds.
Assets and debts come into a marriage in a variety of circumstances and each asset can have its own story. Sometimes assets are brought into the marriage by one spouse. Sometimes during the course of the marriage, someone has a car accident and secures a dollar amount that remains an asset. Perhaps there is a death in the family and one spouse inherits money. Maybe someone is a stay at home parent and all the assets are earned by virtue of employment of the other spouse.
In a similar way, there are certain debts that exist during the time of the dissolution process. Debts that need to be allocated can include credit card debts, mortgage payments, and school loans. Sometimes debts are brought into the marriage. Other times, one spouse incurs extensive medical bills or gambling debts. Many times debts are incurred simply because of unemployment and the need to pay for basic living expenses.
In the majority of divorces, issues of asset division and debt allocation are not considered solely on their own merits. Given the overall financial picture, asset division takes into account the debt allocation. There is an extensive mosaic that is woven such that at the end of a marriage asset division and debt allocation is fair for both parties.
Asset division and debt allocation can be an extremely complex and emotional issue. A lawyer with experience in asset division and debt allocation can help you sort through the issues and come to a reasonable resolution. My name is Jim Katz and I have been practicing family law for over 30 years. I invite you to call our law firm today at (860) 871-9449 for a free consultation to learn how I can help you.