Marital Debt Division
Just as spouses have equitable claims to community property, they have a shared liability for community debts of the estate. However, it may not be fair or practical to split those debts in half, especially when one spouse has markedly less income. Thus the issue of debt often requires more creative solutions to reach the right balance.
The law firm of O'Brian & Associates has experience in negotiation and litigation of marital debts, including high net worth divorces. Representing clients in King County, Snohomish County and the Greater Seattle area, we work to ensure that our clients are not unduly burdened in the distribution of debt. We invite you to give us a call today to discuss your unique situation.
Options For Divvying Up Debt In A Washington Divorce
It does not matter whose name is on the credit cards or the loan documents. Any debts acquired during marriage, even debts incurred without the other spouse's knowledge, are in play when a couple divorces. As a practical matter, debts are divided based on the ability of each party to pay, and sometimes the court will give the higher earner a larger share of the debt.
However, debt is often used as barter in the negotiation of property division and spousal maintenance. The tradeoff possibilities are plentiful:
- The debts are split 50/50 but the property is split 60/40
- The husband takes all joint debt in exchange for full stake in his business
- The wife foregoes alimony but gets divorced debt-free
We provide options and advice for out-of-court agreements when feasible, but our trial lawyers are prepared to litigate complex disputes over assets and liabilities.
Bankruptcy And Divorce
If you were financially overwhelmed as a couple, you will likely be even more strapped on your own. If you are headed down the road to insolvency, it might be better to file bankruptcybefore getting divorced. We help clients consider their options and long-term interests.
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Call (425) 276-7677 or email us to arrange a confidential consultation with an experienced attorney.
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