Some of the married couple indicate that they want to become separated, which will go directly to the need to dissolve the marriage. Some people are not willing to quit completely but they require some time of separation before they can decide whether to continue with the partnership or not. Even if every couple can adopt some basic rules to properly handle finances during a separation, it is significant for couples to understood that there is and varieties of separation and the availability of that type depends on states. In a legal separation that is recognized only in some states, your property and newly accumulated debts may be divided the same way it is in divorce. Anyone who has incurred the debt is the one who has to look for a way of repaying the same.
What Is Legal Separation?
A divorce is as permanent as independence and therefore should not be chosen without adequate thought. That is why there is the stage of separation as a reversible process, during which it is possible to work through some of the problems, think about the desire to continue a common marriage or not. Currently, the laws of most states allow no-fault divorce, and a couple does not bother with separation before they consider divorce. Nevertheless, some states are known to have a cooling-off period before the actual divorce takes place although this period might only apply in specific kinds of divorce.
In fact, there are some categories of separation and there’s also a difference between states regarding options. Before proceeding this article is exclusively based on the legal separation although there are other types of separation.
• Trial Separation: This can be a mutual decision where the couple has no intentions of divorce yet but wants to live apart in a bid to fix the marriage. It doesn't require court intervention. In as much as finances are being viewed financially, the couple is still legally considered as married and nothing changes. It can be terminated at any one’s discretion without necessarily approaching the court.
• Permanent Separation: For those who have irreconcilable differences and no intention of going back to each other but do not want to file for divorce yet, they are considered as legally separated without need for legal proceedings until otherwise. That being said, currently, in some states, the parties who are separated by some times are not liable for any debts that the other incurred. However, permanent separation can also be ended anytime through the process of getting back together. Also, if the couple is sure that they would never be able to reunite, a trial separation can consequently lead into a permanent one.
You must submit a court petition to make legal separation happen. A judge controls splits of property and financial obligations during this process which states can allow depending on their own rules. This decision also influences child care plans and parental support decisions. Customers should verify their insurance policy terms because formal separation counts as divorce in many plans.
A legal separation holds the same properties as divorce though in this arrangement the court can reverse it by granting a treatment motion. After completing a legal separation in specific states neither party can reenter marriage but the separation expires permanently especially when made to uphold religious values or maintain tax advantages. All states make the couple receive a specific time frame from the judge before they must choose separation or divorce.
What Happens to Debt When a Couple Separates?
Debt handling depends fully on the partnership's form of permanent split. During trial separations both partners stay legally responsible to repay debts. Individuals in permanent separation keep all income and debts they earn or make after the separation. While a legal separation mimics divorce processes in most ways it differs fundamentally from a traditional divorce. The steps to handling shared debt differ when you live in a community property state. Every state recognizes all joint debt or assets must belong to both spouses except when ownership is explicitly stated otherwise. Beliefs about shared ownership vary across states. Most states stick to community property law which applies joint ownership to everything acquired during marriage. Joint ownership rules apply even when you tried to maintain separate financial separation from your partner. Special conditions exist regarding which debts or assets qualify for legal protection and how they can be defined through marriage contracts.
Consider the assistance of the professional lawyers at Vacanti Shattuck Finocchiaro law firm now to make the right decision at the right time. Call us for free consultation here (402) 235-6070.
