Divorce and marital debt in New York

Like assets, marital debt must be fairly divided upon divorce. Common types of marital debt include (but are not limited to):

• Mortgages
• Automobile loans
• Joint credit cards
• Personal loans

These debts are usually accumulated to benefit the marriage, which is the case with mortgages and car loans in particular. They can also include student loans taken out to improve career prospects during the marriage and credit card purchases for family necessities.

Under certain circumstances, obligations each spouse incurred while single can become marital. If for example, a husband brings $15,000 worth of credit card debt into the marriage and the wife uses her own money to help pay it off, then the debt may become a joint one because an intention to address it as a couple has been demonstrated.

Proving marital debt

For a debt to be considered marital, proof must exist that it was originally created for marital purposes. During a divorce, the onus is on the person making the claim to prove that the debt was created for the benefit of the marriage. Was it used to pay household bills? Taken out to purchase a car for family use? Loan or credit documents, along with purchase receipts, may be required to validate the claim that a particular debt was marital. These documents must include:

• the amount of the debt,
• who the debt is owed to, and
• for what purpose the debt was incurred

If the required proof is lacking, then New York Courts won’t assign responsibility. Instead, they normally order that each party is liable for the specific debts in their own names. Any debt created after a divorce action has been commenced is also the sole responsibility of the spouse who incurred it.

Dividing marital debt

When dividing marital debt, courts have a certain amount of discretion. The point is to make the distribution fair as opposed to 50-50. This means that debt can be allocated based on factors such as one party’s ability to pay compared to the other, or who was responsible for an obligation in question. For example, if one spouse uses a joint credit card to buy expensive gifts for a girlfriend or boyfriend, then the other spouse will likely not be held liable for repaying the amount spent.

Marital debt and the issues surrounding it can be extremely complicated, and often have to be judged according to the relevant circumstances. If you are planning to divorce in New York and require insights and assistance with marital debt determination and other issues, then contact an experienced New York family law attorney. Your attorney will protect your rights by working to ensure that any debt you bear responsibility for is either yours alone or a fair allotment based on applicable circumstances.

Eskin & Eskin, P.C. is a family law firm for family law matters. Our highly experienced attorneys handle cases involving divorces, family court, child custody, visitation, spousal support and more. Visit www.EskinandEskinLaw.com to find out more about our Bronx office. Call 718-402-5204 to set up a free consultation.