Skip to main content

Division of Debts in Maryland Divorce Cases


Financial concerns such as debts have given birth to many divorces. Unfortunately, even after getting apart, debt issues never disappear until resolved. From credit cards to student loans, debts can make situations worse if you don’t know about the law and order of the state. You should know about several laws such as tax laws, corporate laws, debt laws, and even estate law Bethesda to bring yourself out of these situations.

Before we tell you how the debt is divided between two former partners, you should know about sole and joint debt and how liability works in both situations. To clear the air, let us tell you that any debt your ex took before your marriage is none of your concern. Any loan including auto loans, student loans, or even credit cards that your former partner took prior to the marriage has to be settled by him or her. Maryland Code §4–301 states that you have nothing to fear in case your ex fails to make payments associated with previous loans.

Unfortunately, any loans that you and your ex have taken together will have equal consequences for both you. Unfortunately, even if you have paid all your share of the mortgage and your ex has failed on his or her part, you still have to face the consequences. A partially shared debt by a couple further raises complications. This becomes most common in-home and land ownership cases. An expert in estate law Maryland can help you understand the partially shared debt.

The Role of Equitable Property

Being an equitable distribution state, Maryland does not necessarily divide the shared property into equal parts. The term “equitable” represents fairness in the judgment rather than an equality in the division. The courts have to take several factors into consideration such as earnings of both the partners, their standard of living throughout the marriage,  and whether or not someone sacrificed the earning potential for the care of the family.

Creative Solutions for Shared Debt

Former partners who opt for negotiation or collaboration often peacefully settle their debt issues.  Most of the divide real estate or other expensive assets to settle their share in the debt. This practice is quite common in spouses that have joint business affairs.

If you have previous marital debts that you and your ex took on together, better start saving your part and ask your partner to pay his or her part. You can take the help of any estate law Bethesda expert with extensive knowledge of such cases.

Labels:
Location: 10411 Motor City Dr Suite 750 #6E, Bethesda, MD 20817, USA

Comments

Post a Comment

Popular posts from this blog

Have A Hassle-Free Business Audits With Trust Lawyers From Maryland

Being an entrepreneur is not as easy as it sounds. You should have sound knowledge of every business area to be successful in it. Tax season is one of the most nerve-wracking experiences for people in the business.IRS performs an audit on the entrepreneurs to check whether the income and deductions are filled as per the laws. IRS conducts random audits year after year. If they find the reports erroneous, then they raise objections to them. If you feel that managing and filing tax documents is a daunting task for you, hand over the responsibility to trust law Maryland . This expert knows how to communicate with Maryland IRS and will negotiate with them properly. They address the IRS business audit in the following ways : Understand The Scope of The Tax Audit All the documents requested by the IRS are gathered, and answers are prepared in detail. At times the experts do detailed analysis of information related to accounting and record-keeping. If the audits occur in the office or field, ...
1 comment
Read more

4 Smart Ways to Boost Your Monthly Savings

  Everyone wants to save money but it’s not as easy as it sounds. Contrary to popular belief, saving is not only about serious lifestyle changes.  There are some methods, hacks, or free solutions that can contribute to your saving goals without affecting your lifestyle.  Spending cash should not affect your savings bank accounts and to make it true, you need to follow these effective but unknown ways. Now, some of you may think that money-saving tips need strong commitment but in our years of experience as the top firm for  estate law Bethesda , we have seen people saving significantly from these tips to get a five-figures in their accounts.  After reading every tip carefully, you can either sign a better deal with your car insurance or you will maintain a good credit score and save on monthly instalments since all these tips can be highly effective individually. Build and Maintain a Good Credit Score. Being experts in tax and estate law Rockville , we know the ...
Post a Comment
Read more

Know About the Employer's Taxes and Their Responsibilities?

Employers are entitled to more responsibilities than we can think of. From managing the in-house activities to handling tax responsibilities, employers perform so many tasks to maintain the expected decorum. They have several payroll tax responsibilities to adhere to while managing intrinsic managerial tasks.  Of course, they are responsible for filling in employer taxes and getting along with their fellow workers. Employers with a team of employees under them are supposed to pay taxes according to the updated rules and regulations. As performed 941, payroll taxes for employers are pretty much straightforward. Handling a position holds you credible for taxes and following other responsibilities too. Employers are obligated to withhold taxes for FICA and Federal Income Tax agencies that depend on your location, industry, and the number of employees. Read Also: Everything You Must Know About Estate Tax Planning The Right Time to Deposit the Employment Task: Not just employers but emp...
Post a Comment
Read more