People who are going through a divorce have to divide the property and assets that they accumulated during the marriage. In New Jersey, economic mediation is the process that’s used to take care of this. It gives the parties a chance to agree that the marriage is ending and to work through the property division without having to have a judge decide the details.
If you’re going through a divorce, understanding the mediation process is critical. While this doesn’t involve going through a trial, it’s still a structured process. You and your ex will work with a neutral third-party mediator to come up with terms for the property division, as well as financial support, if necessary.
How does mediation work?
During economic mediation, you have to split assets and debts. This can be challenging, but it’s necessary. One of the first things that you have to determine is how the debts will be handled because that determines how the assets are handled. You and your ex have the option of liquidating assets to pay off debts. In that case, you will have fewer assets to divide. The other option is to divide everything.
If you opt to divide debts, you should remember that you and your ex will both be held liable for the debts. Your creditors don’t have to abide by the court order since they weren’t part of the divorce. Because of this, you should think carefully about how debts will be handled.
It’s critical to work with someone familiar with these property division options so they can help you to review those and determine how they may impact your case. Doing this as quickly as possible once you know that you’re going to divorce is often beneficial.