When a former spouse disregards the terms of his divorce, the refusal to pay debts or transfer property as previously agreed may significantly impact the other party's finances. An individual who needs to enforce the terms of a divorce should understand the financial rights and obligations of spouses. The ex-spouse seeking enforcement may wish to consult with a Nevada attorney regarding the relevant divorce and bankruptcy laws.
Asset and Debt Division in Divorce
As part of a dissolution of marriage in Nevada, the couple must assign its assets and debts to one spouse or the other through property division. The spouses may negotiate a settlement agreement to divide their property and to explain which spouse has responsibility for each debt. Alternatively, a couple without a settlement agreement receives orders regarding property division from the divorce judge. Under Nevada's divorce laws, the court may assign each separate debt to the spouse who incurred the debt. The court may also assign responsibility for payment of community debts incurred during the couple's marriage by either requiring one spouse to pay a particular debt or dividing responsibility between the two spouses.
Enforcement of Property Settlement
After the Nevada court has finalized a couple's divorce, one ex-spouse may seek to enforce the terms of the divorce if the other party does not comply. Section 125.240 of the Nevada Revised Statutes explains the enforcement procedures allowed under state law. The ex-spouse seeking enforcement may ask the court to garnish the other party's wages for payment of court-ordered support or to issue an order for the seizure and sale of property as required by the divorce. Nevada law also permits the court to place an ex-spouse in contempt of court for non-compliance with the financial requirements of a finalized divorce.
Enforcement of Debt Payments
When the divorce agreement or judgment includes the assignment of debts to each ex-spouse, non-payment of those obligations may result in financial difficulties or problems with credit history, especially if both individuals' names remain attached to the debts. Creditors may still be able to seek payment of a community debt from either spouse, even if assigned to one spouse in the divorce. An individual may seek to enforce the terms of the divorce through section 125.240 of the Nevada Revised Statutes and request that the court place the non-paying spouse in contempt of court. Additionally, the individual seeking enforcement may also be able to request a court order for modification of other financial obligations related to the divorce, such as payment of increased alimony, to compensate for payment of debts assigned to the other party in order to prevent penalties or defaults.
Divorce Terms and Bankruptcy
Even though a couple's divorce may legally divide its assets and debts, each ex-spouse should understand the consequences of one or both individuals filing for bankruptcy. The effect of bankruptcy on marital debts often varies between Chapter 7 and Chapter 13 filings. Depending on the language of the couple's divorce judgment, payments owed to one ex-spouse by the other may or may not be dischargeable in bankruptcy. If a bankruptcy court discharges a debt owed to a creditor, the other ex-spouse may be able to seek compensation in Nevada family court due to the change from agreed-upon terms in the divorce. Each spouse may wish to obtain personalized advice from a bankruptcy lawyer regarding the effect of one party's bankruptcy on community debts held in both former spouses' names.
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