Splitting Up the Estate: How Secured Liabilities Work

Splitting up the marital estate creates many tough questions. One question that no divorcing couple likes to deal with is how to handle any secured liabilities in the marital estate. But any Thousand Oaks divorce attorney knows how important it is to reach a fair and agreeable decision regarding them.

Secured Liabilities Explained

Thousand Oaks Divorce AttorneySecured liabilities are debts with an interest in real assets such as property. If the debtor defaults on payments, the property can be used to satisfy the debt. A common example is a home mortgage: the mortgage is secured by the house, and the property covered by it. Most secured debts are tied to a specific asset, and your Thousand Oaks divorce lawyer can help you figure out which of your debts are secured or unsecured.

When adding up the marital estate, any asset and its associated debt should be taken as a single item. It is deeply unfair, as any Thousand Oaks divorce attorney will tell you, for one spouse to take an asset like a car, and the other spouse to be stuck with the debt left on the car.

Separating Assets from Liabilities

One way to think about how to navigate your divorce is that it should primarily be about removing control. Your Thousand Oaks divorce lawyer will not want to separate assets and liabilities in order to minimize the amount of control either spouse can wield over the other. If an asset and its debt are separated, that allows the person responsible for the debt to control what happens to the asset.

For example, if the ex-wife gets the car but the ex-husband assumes the remainder of the debt on the car, then he can threaten to withhold payments on the car if the wife doesn’t do what he wants. Your Thousand Oaks divorce attorney will not approve of this kind of leverage from either side.

For an Experienced Attorney

To ensure the fairest and most agreeable outcome to your divorce, get the help of an experienced Thousand Oaks divorce attorney. Call Gary Mitchell at 888-452-1846.

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