Mar 5

What happens to matrimonial assets and debts after divorce?

Matrimonial assets (money on bank accounts, furniture, vehicles, former matrimonial home) and debts (rent areas, taxes due, short fall of mortgage) will be dealt with separately from the divorce proceeding.

If there is no agreement on liquidation of matrimonial assets between spouses the dispute will be settled by a Judge.

In a mutual consent divorce the assets must be liquidated before the Judge can pronounce the divorce.

In all the other form of divorce (for example: divorce for fault, divorce for separation for more than two years) the liquidation of matrimonial assets can be ordered by the Judge sometimes many years after the divorce is pronounced.

If the ex-spouses do not agree on the fate of the former matrimonial home, it will be sold during a court auction, usually at a price far below the market price.

To avoid this it is preferable to reach an of out of court agreement.

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