Debt Allocation

Equitable Distribution also incorporates the issue of the allocation of a particular debt as long as the debt is deemed marital. In a matrimonial case debt is designated into two (2) categories, marital debt and separate debt. Marital debt is generally debt incurred for the benefit of the family, such as the purchase of groceries or clothes. Other examples, include the payment of a family vacation on a credit card or using money from an equity line of credit to payoff a family bill/debt. If the debt is deemed martial property it is apportioned between the parties.

Separate debt, is debt incurred for the benefit of that spouse alone or for the benefit of another such as a paramour (girlfriend/boyfriend). If debt is deemed separate, the court can order one spouse to pay all of that debt (which they incurred) without any contribution from the other spouse.