Division of properties, assets and debts during divorce can be very contentious as each spouse will naturally fight for what they hold to be personally theirs, as well as make a claim on what can be considered marital property. However, when it comes to debts, majority more than willingly give up any claim and let their former partner experience all the benefits in settling everything.
The reality for so many American couples is many owe a huge amount of money – on loans for their cars, mortgages on their homes, and credit card bills for either due to real emergencies or “emergency” purchases. All these debts may not present any substantial effects, at least to a few, so long as the spouses stay together; however, when their marriage falls apart, to whom do the bills go with?
Couples who file for divorce should know that courts give as much importance to debts as these do to assets and properties. A divorce judgment includes a judge dividing debts and assets between spouses. While courts generally divide assets and debts equally, these can also be divided according to each spouse’s circumstances in life. Thus, a spouse who receives more property and/or earns more might be assigned more debt.
State laws vary when it comes to division of debts and assets in divorce. While some states observe the community property rule and so divide everything to divorcing spouses equally, others observe the equitable distribution rule so that assets and earnings accumulated during marriage are divided equitably (fairly), but not necessarily equally.
Regardless of what rule is observed, an article posted in a website found at, www.hhzfamilylaw.com/divorce/, say that in the midst of any divorce, it is overwhelming to think about all of the legal aspects that you must account for when setting up your new life. Not only are you undergoing a formidable change within your relationship, but also you have to make arrangements to accommodate your new family dynamic. You will have to make decisions regarding your finances, estates, assets, and relationship with your children.
One major effect of divorce is actually the continuous payment of home mortgages. A house usually goes to whoever is awarded custody of the children. But what if, in this scenario, payment of mortgages will be required of the non-custodial parent? How likeable will this be to the spouse paying for a house which he or she knows he or she will never get to live in?
It is possible, of course that, due to changes in his or her financial circumstances, such spouse will no longer be able to pay the mortgages. At other times, though, he or she just decides to stop paying the mortgages. In this instance, creditors can come after the particular spouse responsible in making the payment, even though, originally, both parties were responsible for the loan. This is done to protect the rights of the creditor. If payment lapses for about three months, then the house may face the possibility foreclosure.
In the case of the second scenario above, the custodial parent can petition the court to enforce the divorce agreement for the continuation of the mortgage payments. Your former spouse will then have to appear in court to explain why he or she is not following the court order and may be punished with fines or jail time.
The Plano foreclosure lawyers know the home is the most important possession people will ever own. That’s why a foreclosure on their home can be one of the most challenging experiences to go through. Not only can a foreclosure cause lasting damage to an individual’s financial standing, but it can also deprive them and their families of the place they have called home for years. Sadly, there are far too many situations in which lenders wrongfully foreclose on a home.