While asset division is a huge piece of a Wheat Ridge, Golden, and Mountain View divorce, debt will also be divided in a ‘fair and equitable’ manner. This often does not mean a 50/50 split. Let’s look at the way marital debt is divided and the contributing factors to debt division in a Jefferson County dissolution of marriage.
Separate Vs. Marital Debt: Could I Be Responsible for Paying Debt Accumulated Before the Marriage?
Just like property or assets that were obtained prior to the marriage are considered separate and will not be included in as a martial asset, debt works the same way. If your spouse carried thousands of dollars in student loan debt before your marriage, that debt will stay with the other party. However, any debt taken on during the marriage, no matter whose name it is in, is considered part of the marital debt. Even debt accrued while the divorce is pending is considered marital debt – meaning if you are physically separated, you may have no idea if your spouse if accumulating more debt you may end up being responsible for. However, if the debt accumulated is excessive, the law allows an exception to splitting that debt.
How is Marital Debt Divided in a Jefferson County Marriage Dissolution?
Because Colorado is not a community property state (50/50 state), a Jefferson County judge could divide the debt in a way that is fair and equitable. So, if one party has a greater income, the court can assign that party a larger portion of the debt. The judge could also see an equal division as a far outcome, so a 50/50 split is not out of the question. If, like the situation discussed in the previous paragraph, one party runs up the debt, a judge can assign all that debt to the party who incurred it. There is no specific formula or calculation that decides how debt is divided in a Colorado divorce.
Marital Debt Division: The Rules and the Exceptions to the Rules Make Things Complicated
Sometimes, people think that they can handle their own divorce cases without the assistance of any attorney. But, each issue surrounding a divorce, like asset and debt division, is very complex. The Pearman Law Firm is well versed in all the rules and can help you navigate all the complex procedures related to divorce.
If you are ready to get a divorce and want to make sure you are protected when it comes to asset and debt division, call the Pearman Law Firm at 720-259-9528 or for a free phone consultation.
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