DEBT ALLOCATION

Especially during difficult economic times, how debt allocation is treated and which party is responsible for payment of them following a divorce or separation becomes a key topic of discussion and possible litigation. Money, particularly debt, can be the cause of much anger and resentment for both parties.

Debt can be accrued through seemingly normal decisions like getting a mortgage, buying a car, or getting a loan at a bank. Over time these small, ‘normal’ decisions can become a burden due to a bad financial management. Even a once prosperous business venture may falter unexpectedly. The debt may even become untenable due to an unforeseen loss of employment, or other factors outside of you or your spouse’s control.

There is even the possibility of secret debts. Your partner may have chosen to accrue these burdens in secret without your knowledge or consent. It is not uncommon for spouses to keep debts from their partners, or overestimating their ability to pay for their lifestyle. Such unforeseen debts can make the prospect of a divorce more difficult, especially if the burden of payment fall on both of you.

Our firm prides itself in practical solutions in this area, while being able to “think outside the box” in reaching creative solutions to debt allocation issues. We will help make sure you will have a fair outcome, and that unnecessary burdens do not carry over to the new life you wish to build.

Call Hale & Associates for a free consultation to better understand your options and rights.  Our firm will guide you through an equitable way to resolve your family law conflicts whether through a negotiated settlement or, if necessary, courtroom litigation.   

Our Carlsbad based Debt Allocation Lawyers are here for you.