One of the grave challenges that a divorcing couple may face is the division of property and debts. When a couple is filing for divorce, they must be well aware of the divorce process, specifically about how property and debts are divided and its associated laws in Utah.
Usually, under Utah laws, both spouses applying for divorce are seen as contributors to property and debts acquired during the marriage, irrespective of the source of their income. Moreover, it is worth mentioning that Utah courts are entitled to divide marital property regardless of which spouse has the right to property or where assets are located. In this article, we will discuss how property and debts are divided in a Utah divorce.
Division of Property in Utah Divorce
Whenever a couple applies for a divorce in Utah, they must fairly divide their property. In case spouses are unable to reach a settlement, they may ask the court for help in dividing marital property.
Under Utah laws, there must be an equitable division of property. However, this does not mean that division of marital property should be equal. Instead, it depends on each spouse’s contribution and the anticipated future needs of each spouse. In cases where both spouses agree on the annulment and division of marital property, the judge’s responsibility is to review the entire agreement to ensure it is fair. More importantly, once the court’s order is final, property division cannot be ratified, except under certain conditions.
Things to Consider When Dividing Property and Debts
When it comes to deciding the fair and equitable distribution of marital property, certain factors play a profound role, such as the duration of the marriage, the health and age of both spouses, their occupations, the source and amount of their incomes, etc. Utah courts also take into account the medical needs of each spouse and childcare costs, if applicable.
Long-Term Marriage
If the marriage lasted a long time, the marital property is often divided equally, meaning a 50-50 split. The Utah court will also decide whether it is fair to offer one spouse less or more than 50% from the marital property.
Short-Term Marriage
For couples whose marriage lasted for a very short period, Utah courts might put spouses back into the previous financial positions they had before getting married. Simply put, each spouse will get what he/she had at the time of their marriage.
Real Property
Anything that is permanently attached to a piece of land, like a house or any building, is called real property. If a couple bought any real property during the marriage, it would generally be categorized as marital property, irrespective of which spouse signed the deed.
Generally, when real property is sold, the proceeds are divided equitably between the parties. However, one spouse could buy out the other by offering them what they would have gotten if the real property was sold openly. There are also times when one of the parties could be ordered to refinance the mortgage in the other party’s name.
Personal Property
Personal property is commonly known as property, which could be easily moved. Hence, personal property includes valuables such as jewelry, vehicles, tools, furniture, dishes, etc. If the personal property is legally owned, like a vehicle, and the purchase was made when the party was married, the personal property would again be referred to as marital property, irrespective of the condition that it was purchased (i.e., under one spouse’s name). This generalized rule for the division of the personal property in Utah provides that both spouses set up their own personal properties. More commonly, if there are two equivalent personal property items, then, as per the Utah divorce law, both the spouses would receive one item.
Marital Settlement Agreement
During the divorce process, the spouses can come to terms among themselves, which is called a fair division of the assets. The spouses have the option to divide the assets equally and keep whatever they like. Under the marital settlement agreement, both the spouses can submit an agreement to the court. Then the court would make the final decision whether to accept the agreement, allowing them to proceed further with the divorce. However, in conditions where the spouses cannot come to agreeable terms, or in case there are certain items that the spouses are not able to divide among themselves, the decision made by the court would be the final one, whatever it may be.
Premarital Agreement
The division of property among divorcing parties could be established through a valid premarital agreement. In light of the Uniform Premarital Agreement Act, specific agreements remain in effect throughout the marriage. Such a valid agreement could influence personal and real property and individual earnings, other income sources, and retirement plans. Therefore, a premarital agreement is not to be governed by child support, the children’s healthcare expenses, or any other expenditures relating to child care.
Division of Debts in Utah Divorce
Just like marital property, Utah laws require the equitable division of debts between couples applying for a divorce. If both spouses agree to divide the debts they owe based on a mutual agreement, the court will include this arrangement in the couple’s divorce decree. In contrast, if both spouses fail to agree on how their debts will be divided, it becomes the court’s responsibility to divide their debts equitably.
When it comes to the division of debts in Utah divorce, the court must consider the circumstances of divorce and both spouses before the division of debts. It should be noted that equitable doesn’t mean equal; rather, debt division should be fair. Furthermore, Utah courts do not force the couple to pay off their owed debts that he/she entered into merely at the advantage of another spouse. For instance, the court will not force any spouse to pay the debt on any property that is in possession of another spouse.
However, both spouses must pay the debt if they entered into any joint debt during their marriage. Usually, the debts in a Utah divorce include car loans, mortgages, medical bills, student loans, and credit card balances. Marital debts that are supposed to be divided in divorce are liabilities both spouses incurred either before or during their marriage.
Conclusion
Under Utah divorce, spouses are not liable for the separate property or debts. If you and your spouse have applied for a divorce and have outstanding debt or marital property, make sure you thoroughly understand Utah divorce laws to make your marriage dissolution hassle-free and smooth.
