The debts you incurred during the marriage (marital debt) are subject to division upon divorce. Courts handle these debts the same way as assets during divorce proceedings. As such, the court will split marital debts equitably if you cannot agree on how to divide them and do not have a binding agreement like a prenup.
Equitable division means looking at the individual circumstances of each spouse to achieve a fair division. Some of the factors that the court may consider include:
- Each spouse’s income and ability to pay
- The length of the marriage
- Each spouse’s financial and non-financial contributions to the marriage
- The potential future financial needs of each spouse, among others
Considering these factors, one spouse may be responsible for a higher portion of the debt; equitable division does not necessarily result in an equal outcome.
You still remain legally responsible for joint debt
Just because a joint debt has been assigned to your ex during your divorce doesn’t mean you’re free from liability. You may still be held accountable for those debts if both your names are on the account or loan. For example, if both your names are on a credit card, the lender can pursue either spouse for repayment, regardless of the divorce agreement.
Additionally, if your ex defaults on a joint debt, it could affect your credit score. This is why it’s essential to tie up such loose ends by, say, refinancing the debt to remove your name from the account or ensuring your divorce settlement includes provisions for the payment of joint debts.
Seeking legal guidance can help protect your interests during this or other divorce complexities and work toward a resolution that safeguards your financial future.