When a couple gets divorced, they often focus on how to divide marital assets. These are things they own jointly or income they have earned during the marriage, for example.
But it is also important to remember that debts must be addressed during a divorce. Debt does not just disappear, so the final divorce order should assign debt to one spouse or the other at the conclusion of the case. There are a few different details to keep in mind.
Separate debts
For one thing, a couple may have separate debts, and these generally stay with the person who took them on. If someone took out student loans before getting married, for example, and is still paying them off, that is likely a separate debt.
Marital debt
On the other hand, debt that was taken out jointly does need to be divided. A very common example is credit card debt. There can also be issues with mortgage loans or car loans. If one person wants to keep that asset during property division, they also have to be able to take on the loan.
Prenuptial agreements
Finally, a couple that has a prenuptial agreement may already have addressed some of their debts upfront. This agreement can help clearly define which debts belong to one person and should stay with them and which need to be divided during the divorce.
Navigating the divorce process
Going through a divorce means dividing both marital property and debts, and the financial side of this process can certainly be complex. Make sure that you are well aware of your legal obligations and the steps you need to take at this time.
