Marital/Non-Marital Debts
Just as marital or community property is divided between the parties in a divorce, so too are the parties' marital or community debts.
- How are marital debts divided?
- What happens if an ex-spouse doesn't repay debts?
- What are the effects of bankruptcy on a debt division?
How are marital debts divided?
In most states, the law gives the courts the right to divide the parties' joint debts among them, regardless of whose name is on the debts and regardless of which party is at fault tin the divorce. The parties can, in many instances, enter into an agreement providing for the responsibility of their debts. However, if the parties cannot agree, the court will divide the debts and property on an equitable basis. Equitably does not necessarily mean equally. Rather, the court will divide assets and debts based on factors such as the parties' incomes, education, custody obligations, future earning potential, and the standard of living enjoyed by the parties' during the marriage.
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What happens if an ex-spouse doesn't repay debts?
Even if your divorce decree assigns certain of your joint debts to your spouse, you are still technically on the hook for those debts. Thus, if your ex spouse fails to take care of those debts, the creditor can still bring legal action against you for the full amount of the debts. You will then have to file a contempt action against your former spouse for violating your divorce decree and seeking reimbursement for any amounts you have paid. In most states, you will also be entitled to your attorneys' fees.
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What are the effects of bankruptcy on a debt division?
Here is a common scenario. You and your spouse obtain a divorce decree dividing your joint debts equally between the two of you. However, shortly after your divorce is finalized, your spouse files for bankruptcy, seeking to discharge his or her debts-including the debts assigned under the divorce decree. Fortunately, in most cases, if the debts are part of a divorce decree, the spouse cannot discharge them in bankruptcy. However, as noted above, if the spouse simply refuses to pay those debts, you may still be on the hook. For more information about bankruptcy issues, go to TotalBankruptcy.com.
The topic of property and debt division is very complex, and you should make sure you have experienced counsel if your divorce involves these issues. The attorneys of TotalDivorce.com have the necessary experience in this area, and they know how to guide you through the divorce process. If you would like to speak to an experienced divorce attorney, if you're ready to file for divorce, or if you have already been served with divorce papers, we're only a phone call or a mouse click away from helping you. Simply call our number, 1 (877) 349-1310, and you will be connected with a participating divorce attorney in your area who will schedule an initial consultation with you. You can also use our online case evaluation form. Just take a few moments to give us some information about your case (all of which will be kept totally confidential), and one of our experienced divorce lawyers located in your area will get back to you to discuss your case and the options available to you.