Dividing Debt During Divorce
Did you know the average American family has over $100,000 in debt? Now imagine getting a divorce and having to figure out how to divide all this debt. Fortunately, you do not have to figure this out on your own. Divorce mediation services on Long Island, such as Win-Win Divorce Solutions, LLC, will help you and your spouse divide the debts. In New York, the law states that divided debts should be equitable. This is often easier said than done! A lot of factors come into play regarding dividing debts fairly. Here are some common debts that need to be considered during divorce mediation.
Credit card debt is very common. During a divorce, the debt in joint accounts will be divided. It gets tricky in situations where one spouse has a hidden credit card that they were racking up debt on.
If these loans were acquired before the marriage, they would not be split. They will be the responsibility of the borrower. If the student loans were acquired during the marriage, it gets a little more complicated.
Often during a divorce, the car will be awarded to one spouse, meaning they will also have to make the associated car payments. Couples need to be wary about car loans that were co-signed. This can create issues if the spouse given the loan has trouble paying, because technically the bank can come after both co-signers.
The best way to deal cleanly with a home mortgage post-divorce is to sell the house and split the proceeds. In some cases, one spouse will take over ownership of the house and refinance the mortgage. It is important for the couple to figure out what works best for them and keep in mind that the home mortgage might be difficult to afford on one salary.
New York law says to split debts in an “equitable” way. While this works in theory, debts can be complicated, and an equitable split could be difficult. Luckily, through divorce mediation services in NYC such as Win-Win Divorce Solutions, LLC, you don’t have to figure it out on your own. Meditation also allows you to avoid court, where litigation around debts can become messy. As you begin mediation, be honest with your mediator about any debts you and your spouse have. Be open to compromise and remember that you are looking for a Win-Win situation. Contact Win-Win Divorce Solutions, LLC today for more information about splitting debts and mediation.
Click here to contact Win-Win Divorce Solutions For Long Island Divorce Mediation help.
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