What happens to joint debts after a divorce?
December 25, 2022 | 40,00 EUR | answered by Oliver Breitwieser
Dear Family Law Attorney,
My name is Bernhard Kieselbach and I am currently in a difficult situation as my wife and I are seeking a divorce. We have accumulated joint debts during our marriage and I am very concerned about what will happen to these debts after the divorce.
Regarding my current situation: My wife and I took out a joint loan during our marriage to carry out renovations on our house. Now that we are getting divorced, I am wondering who is responsible for repaying the debts. I am worried that I will have to bear the burden of the debts alone, even though we took them out together.
My question to you as an expert in family law is: What happens to joint debts after a divorce? Are there ways to fairly divide the debts or does one spouse have to bear the entire burden? What steps can I take to ensure that the debts are divided fairly and appropriately?
I thank you in advance for your support and advice in this difficult situation, and I look forward to your professional assessment and guidance.
Sincerely,
Bernhard Kieselbach
Dear Mr. Kieselbach,
Thank you for your inquiry regarding joint debts during a divorce. I can understand that you are concerned about the financial aspects of this difficult situation and would like to clarify how debts will be handled.
It is important to understand that during a divorce, all debts incurred during the marriage will be included in the so-called equalization of accrued gains. The equalization of accrued gains is a process in which the assets of both spouses are compared to determine which assets were acquired during the marriage and how they can be fairly divided.
In the case of joint debts incurred during the marriage, these will be included in the equalization of accrued gains. This means that the debts can be divided proportionally between both spouses. It is important to note that this will depend on the individual circumstances and various factors need to be considered, such as the financial circumstances of both spouses, the amount of the debts, and each spouse's contribution to the incurrence of the debts.
To ensure that debts are divided fairly and appropriately, I recommend seeking legal advice early on and possibly consulting a family law attorney. An experienced attorney can help you understand the process of equalization of accrued gains, clarify your rights and obligations, and assist you in finding a fair solution regarding the debts.
It is important that you gather and have ready all relevant documents, such as credit agreements, bank statements, and other evidence of the debts, to conduct a thorough analysis of the financial situation.
I hope this information is helpful and gives you an initial overview of the legal aspects related to joint debts during a divorce. If you have any further questions or would like a more detailed consultation, please feel free to contact me.
Sincerely,
Oliver Breitwieser, Family Law Attorney
