How debt in a divorce is split
When Alabama residents consider a divorce, they may focus on how their assets could be divided once the marriage has officially ended. However, it’s important to note that both assets and debts are split after a divorce. Whether someone will be obligated to pay off a debt or not frequently depends on the type of debt in question.
For example, credit card balances on accounts that are in both spouses’ names will generally end up being split up evenly. However, if a credit card is only in one name, the balance will usually end up being that person’s responsibility.
Whether someone ends up with a mortgage and the marital home often depends on the incomes of both people and if the marriage resulted in children. The person with the greater income or custody of children will generally be given both the home and mortgage responsibility. That spouse will often have to buy out the other person’s interest in the home. Couples also have the option of selling a home and splitting the profit, which avoids the issue of homeownership debt.
Aside from child custody, property division often has the largest impact on life following the end of a marriage. Even if a couple’s finances are divided down the middle, which assets are chosen may have a significant impact on someone’s future. For example, keeping a house may end up being costly due to taxes and upkeep, especially compared to keeping the liquid assets of a savings account. An attorney may explain what is involved in a divorce and negotiate on an individual’s behalf.