In New Jersey, spousal debts are a big issue in divorce proceedings. It's not unusual for one party to worry about the possibility of being partly or even wholly responsible for paying off debts that their partner incurred. However, the answer to the debt responsibility question is, it depends.

You may or may not be responsible for some of that debt. Many factors determine whether you have to take on some of that debt burden. If you're currently dealing with a similar issue, the Family Law Team at the Lento Law Firm can help you explore your options. Call us at 888-535-3686 or fill out this contact form to speak to an attorney today.

Marital Debt Vs. Separate Debt

The courts will often consider when the debt was incurred. If the debt was incurred while both of you were married, that's called marital debt. And it applies to both of you, regardless of who signed for it.

Why? Because loans were likely taken for the benefit of the household. Examples include joint credit cards, mortgages, medical debts, and car loans.

Separate debt, on the other hand, is debt that your partner took on before you got married or after separation. The underlying theme is that you were not together or married when they took on the loans.

Understanding Equitable Distribution in New Jersey

Due to its equitable distribution status, all properties and debts acquired while married are shared equitably or fairly in a New Jersey divorce proceeding. And fairly in this case is not the same as equally.

If the case goes to court, the judge will weigh each partner's circumstances before deciding who gets what debt and asset. This is different from common property states where assets and debts are divided equally regardless of a party's inability to pay it off.

Factors Influencing Debt Distribution in New Jersey Divorce Cases

The following are some of the considerations that will help determine if you'll shoulder some of the marital debt and to what extent:

• Scope of debt
• State law
• Whether there was a prenup agreement in place before the wedding/marriage
• When the other party took on the debt (before or during the marriage). Debts owned before marriage belong to the party, while debts incurred during the marriage will be equitably distributed
• Each party's economic circumstance
• How long the marriage lasted
• Physical and mental state of both parties
• Contribution to spousal career and professional development
• One or both party(ies) capacity to work
• Both partners' current employment status
• Income earning capacity for both parties
• Custodial responsibilities if there are children in the union

Your attorneys or the court will consider all these factors and many more before deciding on who gets what part of the debt.

Contact an Experienced New Jersey Divorce Attorney

Depending on both parties debts and property division during a divorce case can be either amicable or contentious.

To get a fair chance at a good outcome, the Family Law Team at the Lento Law Firm can work with you and your partner to ensure that you do not take on the burden of unnecessary marital debts. Call 888-535-3686 or fill out this contact form to discuss your case.