Division of assets is often one of the most contentious aspects of divorce. For most couples, this includes the division of liabilities (debt) incurred during the marriage. In Texas, dividing debt falls under the same equitable distribution regulations as asset division.
A lawyer experienced in the appraisal of assets and debt could provide guidance through the division of liabilities in Frisco. The knowledgeable team at Towson Law Firm, PLLC could help ensure your rights are protected and assist couples in reaching a fair resolution.
Like assets, debts owed by married couples are either classified as separate or community property. The classification of liabilities depends on the nature of debts and when they were incurred.
Separate liabilities include debts that a spouse incurred before entering a marriage and those acquired by one spouse during a marriage. In other words, a spouse who came into the marriage with separate debts will still be responsible for paying them off after a divorce. These separate debts may include student loans and financing of automobiles.
Most debts acquired during a marriage are considered community liabilities that both spouses are responsible for. This can include mortgages, credit card debt, and other loans used to purchase or improve joint assets. Divorcing couples in Frisco can work together to determine how community debt should be divided. The process typically requires assistance from legal counsel and mediation to reach a fair solution.
Under Texas law, joint marital debts do not have to be divided equally. As with asset division, debts are divided according to the unique facts of the case and in a manner that provides a fair outcome for both spouses. Whether a couple works together to divide debt in a no-fault divorce or the process is completed in court, various options exist to help ensure a fair outcome. Some of the most common solutions for dividing liabilities during divorce proceedings in Frisco include:
A judge will typically approve agreements made between spouses outside of the court system. If an agreement cannot be reached, the court will hold a hearing to determine equitable liability division.
Many couples acquire substantial debt throughout a marriage. How these debts are divided during divorce can have a lasting impact on an individual’s financial future. Various factors of a marital relationship have an impact on each spouse’s financial position and capability to repay debt, regardless of how the debt was incurred.
If you or your spouse is considering ending your marriage, talk to an experienced property division attorney who could help you understand your rights to a fair division of debt. With legal guidance, the division of liabilities in Frisco does not have to be difficult. The experienced divorce attorneys at Towson Law Firm, PLLC could support you throughout the process. Contact us today to schedule your consultation.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
