How Is Debt Divided In Maryland In A Divorce Case?
Generally, the division of debt is complicated because in many cases debt is “titled” to one spouse and not the other. For instance, one spouse may have several credit cards in his or her name only and solely uses this credit card. The Court, however, cannot assign debt from one spouse to another. To resolve this, the Court (if proper arguments are made) may decide that although the debt is marital (by definition) only the spouse that uses the card will be obligated OR the court may decide that they will offset property to cancel a portion of the debt. There are many ways to deal with marital debt but each case has its own unique set of facts.
Another example would be if the title to the house is in one spouse’s name only. The other spouse is not listed on the mortgage (deed of trust), which includes a $100,000.00 loan in the husband’s name only. Even though the debt is in the husband’s name only, it is still marital debt. The Court notes that the wife, however, is entitled to $70,000 of her husband’s retirement. In this case, the Court has an option of subtracting the amount of retirement wife is entitled to from the amount she would owe on the marital home; due to the fact,
This works as a system of checks and balances that allows the Court to order monetary awards and/or deductions to ensure an equitable division of assets and debts.
What Are Some Of The Dangers Of Not Having An Experienced Family Law Attorney Help You Deal With The Division Of Assets And Debts In A Divorce Case?
An experienced family law attorney should possess vital knowledge of the relevant laws of the state he/she is barred in. Each state has different laws regarding divorce, and an experienced attorney should know the rules and protect a client’s rights.
Many people do not know their rights regarding property, child custody, and/or child support. It is important to know what you are entitled to and what you are not entitled to in order to make sure you enter into intelligent Agreements. Oftentimes a person will sign an Agreement and then have “buyer’s remorse” because they weren’t fully informed of their rights/responsibilities. On the other hand, many clients are willing to walk away from many entitlements, just to have a peace of mind, as their goal is to end the marriage as soon as possible and move on with their life.
Additional Information On Division Of Marital Assets/Debts In A Maryland Divorce Case
When it comes to the sale of a marital home, who has custody of the minor children and/or (to a lesser extent) who runs a business from the home may request a period of time before the house is sold so that that the child or business is not abruptly uprooted. In this case, the spouse may request use and possession of the family home for a period of time; not to exceed three years. If the request is made and approved, the Court may delay the sale of a jointly titled marital home so that the minor children are raised in a stable environment. The Court is not giving the home to one spouse but simply ensuring they do what is in the best interest of the minor children.
For more information on Division Of Marital Debt In Maryland, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (800) 400-2350 today.