Couples may consider legal separation for personal and financial reasons. Legal separation can financially protect one or both spouses. When couples get married, they can bring property and debts into the marriage. During the marriage, the spouses may separately or jointly acquire additional assets and liabilities, as well as divide property and financial obligations. If a couple decides to end their relationship but wants to stay married, they can apply for a legal separation. For financial, legal, social or religious reasons, spouses may not want to divorce. However, before I get into the potential financial benefits of legal separation, let me clarify a few fundamental points. When you move, make sure your name is removed from all leases. If your spouse doesn`t pay the rent, you don`t want to be held responsible. When you move, have your mail forwarded to your new address or mailbox. In some states, legal advice is needed to make a separation agreement legally binding. Your lawyer will file an application with the court so that a judge can sign your separation agreement. Some states do not recognize legal separation.
If you enter into an agreement with your spouse in one of these states without ordering them to do so, you will have no legal recourse in case your spouse decides not to obey the agreement. People who do not allow legal separation should ensure that they protect their financial security by receiving court orders prohibiting the acquisition of new debts while the divorce is in progress. The States of the Community assume that all income, assets and debts contracted during the marriage belong jointly and equally to both spouses. Property acquired before the marriage or property acquired by personal donation or inheritance is excluded from community property. If the invoice relates to property purchased before the marriage, the original owner is likely to be solely responsible for the debt, unless the other spouse has expressly agreed to pay the debt. Similarly, if the bill was born after the couple separated; it is likely that the court will consider it a separate guilt. If the bill that was issued is for an expense that arose during the marriage, such as a utility bill or a medical bill, the bill is likely subject to a 50/50 split between the spouses. This also applies if the invoices are mainly in the name of the spouse. When a family court in a state of equitable distribution determines who is responsible for certain debts, it reviews the financial history of each spouse. In States of equitable distribution, there may not be a completely equal distribution of property and debts.
Even if a separation agreement or divorce decree states that one of the spouses is liable for certain debts and the other spouse is not, this declaration has no effect on creditors because the family courts do not have jurisdiction over third parties. The decision to take the path to legal separation is a personal decision that only you and your spouse can make. This is not a choice that should be made lightly. Legal separation should never happen without the advice of an experienced divorce and family law lawyer like Bruce A. Mandel. • Sale of the marital home: When a couple separates, it is common for one or both partners to want a person to stay in the family home for the benefit of the children. Believing that this will give their children more stability, couples can go into more debt than they can bear with a single income. If you can`t agree to share the financial responsibility for the mortgage, taxes, and other bills, it may be in your best interest to sell the home and share the profits. • Manage credit card debt: As long as you are married, all financial institutions will consider your debt as «shared».
It is therefore important to discuss in a civilized way the division of finances when separating marriages. You need to decide on the amount of your common debts and those that have appeared individually. For example, a mortgage would be a joint debt that you would both pay off, but student loans and personal credit card debt can be taken out individually. It would be wise to divide the finances and consolidate your credit cards so that you can close all joint accounts as soon as possible. • Ask a lawyer to make a deal: During your married life, you have made decisions together, you may want to make your financial management as civilized as possible when separating from the marriage. Not wanting to involve lawyers is an admirable goal, but it`s not always the smartest. For example, in the event that a spouse is upset about the separation and starts spending too much on all the finances that are still in a joint account or stops paying the mortgage or monthly bills, your financial institution will expect you to cover the payments. As long as you are still legally married, these unfortunate debts of your ex will fall on you. .
