It is important for couples to know how to split up their debt during a divorce, the same way they need to split up their assets. Debt certainly still remains even when a marriage ends, and it does need to be addressed.
In many cases, these are joint debts or shared financial obligations. As such, both people still have a responsibility to pay. This debt may need to be divided between them, along with their other property.
For example, many couples work together to get a home mortgage. Others have shared accounts, such as a joint credit card account. Because both people’s names are on these accounts, they are both responsible for the charges. Some choose to divide these debts during the divorce, while others will split up debt by exchanging obligations—one person pays off the credit card debt while another pays down a car loan, for example.
Are there any separate debts?
It is possible for couples to have separate debts, often when they took on this debt before the marriage.
For example, it is very common for people to meet their future spouse while they are in college. It could take someone years to pay off their student loans, meaning they are still making payments during their future marriage. But because they took out those student loans while they were still single, they may qualify as a separate debt, and their spouse would not be responsible for them in a divorce.
Every case is unique, however. If a couple was already married when one person took out student loans, those may still qualify as a shared debt, even though only one person was attending classes. It is very important for couples to understand exactly what obligations they face while going through a divorce.