The debt split in
divorce is done during property settlement between the two separating parties
as some questions that influence how debt is divided include debt accrued
before, and during. The party accumulated the debt on which party was paying
the debt off during the relationship was accumulated and how does it affect the
overall asset as there an asset attached to the debt. Other factors that will
influence legal proceedings determining how debt will be divided during divorce
includes the duration of the relationship marriage with financial contributions
made during the partnership. Domestic and other contributions made during the
marriage if there are any children or dependents and the differences in income
between the two parties determining how is debt split by the Gold Coast divorce lawyer. The
court will take into account who accumulated the debt, the names the debt is in
and the purpose of the debt these things will be considered just because a debt
is in one person’s name it does not mean that it will remain with that person
after divorce.
To clarify how is
debt is split by Gold Coast divorce lawyer with
some examples if a couple has a mortgage on a home when they purchased together
during their marriage, one party will ordinarily purchase the other party out
should a separation happen. This means that one party will end up with sole
ownership of the property along with the mortgage fortunately, it will not have
to pay stamp duty to transfer and the share of the property to the partner. A
wastage argument in family law is an argument that one party has wasted part of
the asset pool and therefore it should be solely responsible for the debt
incurred for that waste. This is often argued when a person has a gambling
problem or if they are a big spender and when there is a debt split in divorce,
one party will attempt to guarantee that they don't wind up with the other
party's obligations. If one partner has acquired debts because of problem
gambling during the relationship, it is unlikely that the court and the Gold Coast divorce lawyer will
add the debt of the value back into the asset pool.
The court may
consider that one spouse has been wasteful of the asset and might thus award
the non-gambling partner a larger portion of the asset pool, if an individual
incurs gambling debt post-separation. Before divorce the court might consider
this behaviour as wastage and add the value of the debt back into the asset
pool as the wastage also includes debt incurred by a failed business. Allowing
unrelated parties to access and spend from the asset pool when finding in a
challenging position and thinking about things like how is debt split in
divorce. Consulting with a divorce lawyer to assess the rights and a strategy to
protect the asset as some action steps can start with to protect them include ensuring
a bank account solely in the name that can access. Retaining any of personal
items that are concerned that might claim the property settlement doesn’t need
to take place in a courtroom as good family divorce lawyer is keen to complete
property settlements outside court.
