8833 South Redwood Road
Suite C
West Jordan, UT 84088

Call For Free Consultation

(801) 876-5875


Call Us

How Is Business Debt Handled In A Divorce?

The court has jurisdiction over all of the assets that are owned by both parties, in a husband and wife only business. The court can determine that only one party needs to pay the debt, even though the debt was used for the business, because the business is treated just like any other asset. It can happen, and it really depends on how large the business is, and who is operating the business, and as to what the dispositions of the business, or the business debt will be.

Can Gifts Acquired During The Course OF Marriage Also Be Subject TO Division In A Divorce?

Typically gifts are not distributed equally. They are usually going to be separate property.

Does Infidelity Have Any Bearing On Divorce Proceedings In Utah?

Utah is a no fault state. That means the parties will get a divorce based on irreconcilable differences. They no longer get along anymore. However, you can proceed to file for a divorce, as in committing adultery is one issue. I think there are six of them, if memory serves. It does change whether you can get costs and attorney fees from the other party. It does not change any of the other things as far as asset division is concerned, because the courts still want to divide things in an equitable manner.

However, it is one factor that the courts will look at when it comes to child custody, because one of the issues is which of the parents is doing their best to teach good moral values to the children or the child. That is part the standard for the child that the court will take into consideration Most of the time, it is not going to matter a big deal. In most cases, where one party has committed adultery, the other party usually does not want to seek a case for cause, because it can be time consuming, and it eventually has to cost more, because you have to go to trial to prove cause.

Can Filing For Divorce First Have Any Impact On The Divorce Proceeding?

It typically does not matter as far as division, who files first. We talked earlier about getting that date of separation, and date of petition, those are important, and the sooner you get those filed, the better. Sometimes people talk about divorce, and they think they are going to get divorced, and it sits for years, because nobody ever takes the initiative. We had a case where a couple had been separated for over ten years. They had been living in different states for years, and what happened was when she finally filed for divorce, there was another ten years of alimony that he had to pay. She was now disabled, and unable to work, so you can see that problem. So, if you are separated, and going to move on with your life, you might as well get divorced. If you do not, then you could be responsible for many more issues than you thought.

How Are Pensions Or Retirement Assets Divided In A Divorce?

Pensions, and retirements are similar to the house scenario that we talked about previously. If you own a retirement or a pension before you get married, and then you later get married, the same rule applies as it did to the real estate. If you have a new pension after you get married, or a new retirement after you got married, such as a 401(k), a 403 (b), or a Kellogg plan, those are going to be split evenly, because they are considered marital property. Those are usually split through a different order. It is called the Qualified Domestic Relations Order, or a QDRO. Those are done after a decree of divorce has been entered. If the retirement has been accrued, and developed during the marriage, it is half, and then if it happened before your marriage, then that initial portion will be yours. Any increase in retirement amounts during the length of the marriage will be split equally. In Utah, we call that the Woodward Formula. The reason we call that the Woodward Formula is because there was the case of Woodward vs. Woodward, and that is how the court said that the property should be divided.

What Happens If Somebody Puts Separate Property Into Marital Property After A Marriage?

If it has been transferred during the marriage in both names, it is now considered marital property. Usually, the standard rule is fifty percent down the middle, but if you have acquired equity beforehand, and you owned the house before you got married, and transferred it later, usually you can offset that. What I mean by that is you can get your piece of the equity before your marriage took place. Then just divide the increase of the value of the house from the time you are married to the time you finalize your divorce. That portion is considered marital property, and the portion before is considered your separate property. Again, that does not always happen, but it is something that you can shoot for.

For more information on Business Debt In Divorce, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (801) 876-5875 today.

The Essential Divorce Guide

FREE DOWNLOAD