How are debts handled in a divorce?
Debts incurred during the marriage for family purposes (e.g. Groceries, credit cards, medical bills, etc) will be divided “equitably.” This can but does not always mean equally. An equal division of debt is usually equitable but the court may divide debts unequally. For example, in proportion to each spouse’s income.
Generally if there is a debt associated with an item of property (e.g. you owe RC Willeys $1,000 for a sofa) the spouse awarded that property will be responsible for the debt that goes with it.
If a debt is not incurred for family purposes (e.g. a spouse buys a diamond ring on credit for his new lover) the court will likely order the spouse who incurred that debt to pay it.
Do you have questions about how property and debt is divided in a divorce? Give us a call at 855-254-2600 for answers.