As you discuss your case with a Lowell family lawyer, you can gain a better understanding of different debts that you have. One type of debt that you may have is secured debt.
Secured Debt Terms
Your Lowell family lawyer can explain that most secured debt is considered to be marital debt. You and your spouse may have purchased assets together and incurred debts in the process. In many times, it is not possible to remove one spouse who is giving up an ownership interest in the asset from the underlying debt. This is usually because both spouses are contractually obligated to the debt. While divorce courts can provide orders that address debts, these courts do not typically have jurisdiction over lenders.
Your Lowell family lawyer can explain that refinancing may be possible in some situations in order to remove one of the parties from the underlying debt. This may not be an option for individuals who will be adversely affected financially because of the divorce. Therefore, in many cases, one spouse can be held responsible for the debt if the other spouse does not pay off the debt. Instead, a lawyer may emphasize making provisions in case default occurs, such as making one spouse provide the other with extra assets in case the first spouse defaults on the debt.
If you would like more information about secured debts and divorce, contact the Lowell family law firm of Law Office of Bruce A. Gage by calling 978-384-1078 or 877-829-0831.