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How is debt split in a divorce?

On Behalf of | Mar 11, 2022 | Divorce |

Are you planning on getting divorced in the state of Nebraska? This is a life-changing decision. One of the chief issues will be the division of debt. You need to be certain that the end of your marriage doesn’t leave you in the red.

Nebraska is an equitable division state

The first thing you should know when considering whether or not to divorce is how your marital property may be split. Nebraska is a state that practices the principle of equitable division. This means that the court will split the property in a way that it deems to be fair. You are strongly encouraged to work a settlement on your own that a court can review and agree to.

The court will split up the amount of debt that a couple has incurred during the marriage. Any debts that either party incurred before the marriage will be considered private and, therefore, their own responsibility. A spouse that has a higher income may be required to pay more in order to resolve the debt faster.

How can you safeguard your finances?

There are a number of steps that you can take in order to safeguard your finances in the event of a divorce. One of the very best things that you can do will be to keep all of your credit cards and bank accounts in your name only.

The lower the number of properties and assets that are in both of your names, the better. This will give you a better chance to assert your rights, especially over your pre-marital property. These are issues that you would do well to check on with the aid of a financial adviser.