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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 12-06-2018, 11:17 AM
Acadia71 Acadia71 is offline
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Default Debt splitting based on income??

Maybe this is too vague of a question, but if a couple splits up and they have a net worth of zero, or possibly even negative, yet he was a rig manager making $1200 per day and she was a stay at home housewife/caregiver. Will the courts make her take half the debt accumulated during the marriage?

Does it change if she had no access to money or made no financial decisions during the marriage?
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Old 12-06-2018, 11:30 AM
rockscan rockscan is offline
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What normally happens if all the assets acquired during marriage are added up and all the liabilities (debts included) subtracted from that. Anything left is split.

If one person decides to keep the matrimonial home, the calculation is different.

To answer your specific question though, if the debts were acquired during marriage then yes, the wife gets them too.
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Old 12-06-2018, 12:21 PM
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A) If Assets are more than Debts:


- Debts are split equally.


B) If Assets are less than Debts:


- The person who has their name on the debt gets screwed.




Explanation


A) If Assets are more than debts, then it is a straightforward equalization. Income is irrelevant.


B) If Assets are less than debts, then not all of the debts can be paid off. Some debts will remain. The holders of that debt are not parties to the divorce and cannot be forced to "divide" up the debt in any way. If both names are on the debt, then both people are screwed. Income might be slightly relevant if a judge has to decide which debts will be paid off. However, the judge cannot transfer debt from one person to another. Likely one person is getting screwed.
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Old 12-06-2018, 12:36 PM
StillPaying StillPaying is offline
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Like others have said, she would be responsible for her debt and joint debt.
If he's making $1200/day though, she should get more than enough spousal support to handle her part of the debt.
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Old 12-06-2018, 02:26 PM
Acadia71 Acadia71 is offline
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So far she is getting $1500/month for 2 kids.

Obviously she will have to go for max spousal and make it a lump sum.
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Old 12-06-2018, 02:33 PM
rockscan rockscan is offline
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You may also want to speak to a lawyer about that spousal and her going back to work at some point.
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Old 12-06-2018, 02:35 PM
Acadia71 Acadia71 is offline
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Quote:
Originally Posted by rockscan View Post
You may also want to speak to a lawyer about that spousal and her going back to work at some point.
For sure. The youngest is 3 and she has them full time but she will definitely have to work. Currently she does child care out of her home.
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Old 12-06-2018, 02:56 PM
Acadia71 Acadia71 is offline
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I just realized something....the debts are held in the corporation and she doesn't own that corporation or have her name on it.


Does that change anything??

The lawyer has taken weeks to get back to her since she had to use legal aid.....thanks for the input!
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Old 12-06-2018, 09:52 PM
StillPaying StillPaying is offline
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I don't know anything about corporations, but normally they would both be responsible for their own debt and 50% of joint debt.

I'm not sure where they are in the process or how long they were together, but it's almost certain she will get spousal spousal on top of the $1500 child support. While she may most likely ask for the high end amount, I don't see why it should be lump sum.
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Old 12-08-2018, 07:03 PM
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She wants lump sum so she know she actually gets it. Rather than receive verbal abuse about it every month.

The corporation has always belonged to only him, so I don't really see why it needs to even be split up. He can take his failing corporation and try and turn it around.....lol
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