How Is Debt Divided in Divorce
Dealing with debt in a divorce is similar to how courts deal with assets. Attorney Latrice Knighton of Sterling Law Offices answers questions we often hear concerning dealing with the division of divorce debt.
Who pays the debts in a divorce? How does debt get divided? What is the divorce debt division process you should know for divorce in Wisconsin?
Dealing with debt in a divorce is similar to how courts deal with assets. The courts will look at the entirety of the marital balance sheet as it relates to assets and debt and make the bottom line number equal out for both parties.
When it comes to figuring out what debts and assets the court will look at during the divorce process, keep in mind, in Wisconsin, everything you bring into the marriage will be looked at as marital property and debt. With these expectations: Wisconsin does not see inheritance or gifts as marital property.
However it must be provable that you brought the inheritance into the marriage and kept it separate from the joint accounts in order to qualify as not marital property. This means kept completely separate. Once the funds are commingled, proving that this money is not a marital asset becomes a lot more difficult.
When it comes to properly dividing assets and balancing the debts during a divorce, the courts will not look lightly and will likely punish the party that hides assets during the divorce process. Remember the goal of the courts is to balance out the debts owed against the assets divided during a divorce. If assets are hidden away, this can not be done properly. The courts will do what it takes to provide remedy to the injured party.
Learn More About Attorney Latrice Knighton
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It is important that the court acquires jurisdiction over the persons of the defendant and the plaintiff or the petitioner. Jurisdiction over the person of the defendant is acquired upon the proper service of summons. “If service isn’t proper, you’ll have to start all over again,” explains attorney Kinsler.
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