There are three types of tax debt that may be addressed in a divorce: tax debt that was paid off during the marriage, tax debt existing at the time of divorce, and tax debt that may exist in the future.
For many divorcing couples, at least one if not both spouses have student loan debt. What happens to that debt in the divorce process?
Divorcing spouses are entitled to divide credit card debt between them however they jointly see fit. Where they can’t agree, a court will engage in the same inquiry it does for any other type of debt.
Most homeowners have debt associated with their home, usually in the form of a mortgage and/or a home equity line of credit. In a divorce process, this is often the largest marital debt on the table.
Property division in a divorce happens in three stages. First, the property is classified as either separate property or marital property. Then, the marital property is valued. Finally, the marital property is distributed between the parties.
The first step in determining how to divide property in a divorce is to figure out what property will be divided in the first place.
We care about whether something is defined as separate property or marital property to know whether it will be divided between us and our spouse in a divorce process. Separate property is off the table; it remains entirely with its owner.
Child support is the financial support parents are required to provide for their children. Contrary to popular belief, child support is the responsibility of both parents.
Calculating the first part of the child support award—i.e., the regular payments from one parent to another—is a three-step process.
To calculate regular child support payments, you add the parental income together, and apply a corresponding percentage to the lesser of the combined parental income or a sum assigned by statute (currently $163,000).