How is marital debt distributed?

In Massachusetts, when a couple divorces, marital debt is distributed according to state law. When it comes to the division of marital debt, Massachusetts follows the “equitable division” model. This means that the court will seek to divide the marital debt fairly between the two parties, considering factors such as the length of the marriage, the contributions of each party to the marital debt, the parties’ respective economic circumstances, and any other relevant factors. Marital debt includes all of the debt that was incurred by either party during the marriage, regardless of whose name is on the debt. This includes credit cards, mortgages, car loans, medical debts, and any other debts that either party accumulates during the marriage. The court will take into account which party acquired the debt, the parties’ respective ability to pay the debt, whether one party contributed more to the household finances, and the parties’ respective income and economic circumstances. The court will also consider the tax consequences of the debt distribution. In some cases, the court may order the payment of one party’s debt to another party as part of the divorce settlement. Generally, the court will not consider debts that were obtained prior to marriage or post-divorce. Finally, the court will consider any debts or assets that were acquired through an inheritance. Generally, the court will not consider inherited assets or debts as marital property to be divided in the divorce settlement. It is important to note that the court may allocate marital debt differently than the parties agreed to in a prenuptial agreement or in a settlement agreement.

Related FAQs

What is a no-fault divorce?
What is an absolute divorce?
What is a prenuptial agreement?
What is the difference between a legal separation and a divorce?
Can I get an annulment?
What is a marital deduction?
How is a divorce settlement divided?
How is child support calculated?
What is a default divorce?
What documents do I need to file for a divorce?

How is marital debt distributed?

Related FAQs

Related Blog Posts