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Scottsdale Attorneys for Debt Division in Divorce

Finding Solutions for Marital Debts

Increasingly, marital debt is a major factor in divorce litigation and property settlement agreements. From credit card balances to the mortgage, a substantial amount of community debt often leads to stalemate and reluctant trade-offs.

The Arizona divorce lawyers of Childers & Huey PLC have extensive experience in high-asset divorce and complex property division, including creative solutions for the special challenges of dividing debts. Please call our Scottsdale office at 480-624-2776 to schedule a confidential consultation.

Arizona Community Debt Lawyers

Just as assets accumulated during the marriage are considered community property, debts and liabilities incurred during the marriage are also considered under Arizona divorce law to be community debts. The presumption of an equal distribution of joint debts can seriously hinder negotiations toward a property settlement.

We help clients address any type of marital debt:

  • Credit cards and charge accounts
  • Lines of credit, such as home equity loans
  • Auto loans and other collateralized debt
  • The mortgage on the marital residence
  • Business debts from a professional practice, partnership or small business

Our experienced attorneys can help you explore all the options and find practical solutions that do not paint you into a post-divorce corner of unsustainable debt payments. When one spouse has more capacity to pay down community debts, for example, that spouse may take on a greater share of debt in exchange for a larger portion of the retirement savings.

Community debts also play into negotiation or litigation of spousal maintenance (alimony). For example, a wife may need additional maintenance to pay down her share of the credit card balances. But because spousal maintenance is taxable income, she might be better off if the husband took a greater share of the credit card debt in exchange for less maintenance.

We run the calculations for various scenarios so that you can make informed decisions that make the most sense for your post-divorce finances. We commonly bring in forensic accountants to discover undisclosed income or assets that could be applied to pay off or absorb marital debts.

For an appointment, please call the Childers & Huey firm at 480-624-2776 or contact us online.