Timing is a critical consideration when dividing marital debts in a Pennsylvania equitable distribution case. Generally, marital debt includes all debts, charges and liabilities that were incurred prior to the final separation, whether they are in joint names or the name of just one spouse. The law is less concerned with who incurred the debts than when they were incurred. Some people who are facing marital separation discover marital debts which have been incurred by their spouses without their knowledge or consent. Dealing with this problem is just as important to the lawyers of Pollock Begg Komar Glasser & Vertz LLC as dividing the marital property.
How do Pennsylvania divorce courts allocate debts?
In Pennsylvania, the divorce court has the authority to divide marital debt fairly and equitably between the parties. Examples of marital debt include mortgages, home equity loans and lines of credit, car loans, credit cards and tax obligations. Some debts, such as mortgage loans, come with tax benefits that should be carefully considered. On the other hand, some debts may need to be refinanced or extinguished so that they do not adversely affect the credit rating of the other spouse. These considerations are not always contemplated by the courts when divorces are litigated, so litigants must be vigilant when trying or settling cases.
A good settlement or trial outcome will protect both spouses from the financial consequences of dividing debt. At Pollock Begg, our lawyers possess the knowledge and skills necessary to help you ensure that any debts arising from your marriage are properly addressed.