Debt Does Not Disappear
Divorce can be difficult and stressful, especially when dividing assets and liabilities. In Ohio, the court will consider various factors in determining how debts are divided between the parties in a divorce. This blog will discuss what factors courts consider when dividing debts during a divorce in Ohio and offer advice on how best to protect your financial interests during this difficult time.
Debts Must Be Divided
Ohio courts follow an equitable distribution approach when dividing debts in a divorce. This means the court will consider various factors when deciding how to divide the couple's liabilities fairly. These factors include but are not limited to:
Each spouse's separate and marital debt
Each spouse's income and ability to pay their debt
Each spouse's contributions to the acquisition of marital debt.
The courts generally look at both separate and marital debts when determining how to divide them in a divorce. Separate debts are those acquired individually by either party before marriage, while marital debts are accumulated during the marriage. Both types of debt will be divided according to what the court deems fair in a divorce.
Though the Ohio courts will consider many factors when dividing debts, it is important for each party to know what they are liable for and to be prepared to make sure their interests are protected. This includes understanding what sources of debt you are responsible for and taking steps to ensure that any joint liabilities are paid off or transferred to one party.
In addition, parties need to be aware of potential tax consequences that may arise when debts are divided during a divorce. In some instances, the division of debt can affect a person's taxes and should also be considered.
Work With Cleveland Divorce Attorneys
Divorce can involve many aspects that require careful consideration and understanding. It's best to work with a qualified family law attorney who can give you the guidance you need and protect your best interests.
At The Law Offices of LeeDaun C. Williams LLC, we work to do what's best for our clients and help them navigate all aspects of divorce. Learn more or get started by calling (216) 350-8511 or visiting our website.