How to divide your debt when divorcing

How to divide your debt when divorcing

| Aug 16, 2019 | Property Division |

When your marriage hits a rough patch you will likely do everything possible to fix the underlying issue. But, what if the problem cannot be resolved? This happens all too often to couples all throughout Kentucky. Marriages just simply don’t work out for one reason or another. When you prepare to file for divorce, it’s important to understand how debt is divided so you know what to expect.

Do you have credit cards in your name only? If so, the debt on those cards will be your sole responsibility. The same goes for your spouse if he or she has credit cards in their name only. But, if the two of you are named on credit card accounts, both of you will be responsible for the balances.

If you own a home with your spouse, you more than likely have a mortgage. This is shared debt, which is why most divorcing couples sell their marital home. After selling the home and paying the balance of the mortgage, you can split the remaining money with your soon-to-be former spouse.

Medical debt can be a serious issue when going through a divorce. If the debt was acquired during the marriage, the debt will likely be divided between you and your spouse. It’s also possible that the judge will not divide the debt between the two of you, depending on the situation.

Dividing debt when going through a divorce is an important part of the process. One spouse should not wind up with all of the couple’s debt unless this is agreed upon between the two parties for some reason. Be sure you are prepared for what is to come once the divorce is finalized.