The division of marital assets is an important component of any Colorado divorce. However, the division of marital debt is equally important.
The experienced Denver divorce attorneys at Goldman Law, LLC are experienced at handling this contentious aspect of divorce cases, and can help you effectively limit your liabilities during the division of marital debt.
Marital Debt vs. Personal Debt
When dividing marital debt between two parties, the first step is determining how much of a couple’s total debt is comprised of marital debt versus personal debts. Although this distinction may be difficult to make in certain situations, marital debt generally includes any debts incurred throughout the course of the marriage.
Typically, however, debts that are not considered marital debts include:
- Any debt incurred before the marriage or after a couple has officially separated
- Any student loan debts, regardless of whether the party was single or married at the time the debt was incurred
- Any debt acquired for purposes deemed inappropriate, such as debts incurred from gambling or in relation to an extramarital affair
These debts therefore remain personal debts, and so only one party should be responsible for repaying them.
Determining Factors in the Division of Marital Debt
As soon as the types and amounts of debt have been identified, the next step involves dividing marital debt between the divorcing spouses. Though attorneys for both parties may be able to arrive at an arrangement that both parties can agree upon outside of court, the court takes over and oversees the division of marital debt when making such agreements are not possible.
When the courts handle the division of marital debt, the following factors are taken into consideration:
- The length of the marriage
- The total amount of marital assets already been awarded to one or both parties
- The total amount of spousal or child support payments either party has been awarded or ordered to pay
- Each party’s overall financial standing
- What the court deems to be equitable
It is important to note that the term “equitable” in the division of assets and debt does not necessarily mean “equal”.
Contact the Denver Divorce Attorneys at Goldman Law, LLC
The division of marital debt can significantly impact an individual’s financial situation both in the short and long-term, and so it is essential to consult an experienced attorney who can help you obtain a fair and favorable division of marital debt.
If you are undergoing a divorce in Colorado that involves the complex division of marital debt or feel that marital debt has been unfairly distributed in your divorce, seek representation from a trusted Denver divorce attorney at Goldman Law, LLC as soon as possible. We are ready to stand up for your rights and protect your best interests, and will help you resolve your case in the most efficient and favorable manner possible.
Call Goldman Law, LLC at (720) 336-2362 or email us using the contact form on this page to schedule a professional case evaluation and learn more about your rights. We serve clients in Denver and all throughout Colorado.