How are debts split in a divorce

The short answer

There is no single national rule for how debts are split in a divorce. Family law varies by state, and courts often look at when the debt was taken out, what it was used for, and whose name is on the account.

Some states follow community property rules. Others use equitable distribution, which means a fair division based on the circumstances. Fair does not always mean equal.

If you want a broader overview of divorce issues, you can start with our guides.

What kinds of debt are usually considered

Courts often look at whether a debt is marital debt or separate debt. Marital debt is generally debt taken on during the marriage for the benefit of the household or family. Separate debt is often debt one spouse brought into the marriage or debt taken on for personal reasons.

Common debts in divorce may include credit cards, mortgages, car loans, medical bills, student loans, and personal loans. The way each debt is treated can be different.

Even if only one spouse’s name is on the account, the debt may still be considered shared in some situations. The title or account name is only one part of the picture.

Who is responsible to the lender

A divorce order may say one spouse should pay a certain debt, but that does not always change the lender’s rules. If both spouses signed for the debt, the lender may still be able to look to either person for payment unless the debt is refinanced or otherwise changed.

This is one reason it matters to review accounts carefully before and during divorce. Missing a payment can hurt credit, and joint debts can affect both people.

If you are trying to understand your options, our divorce services page explains how Next Page Family helps people connect with a qualified family-law attorney.

What courts may look at

A court may look at several facts, including when the debt started, what the money was used for, whether both spouses agreed to it, and each person’s financial situation.

For example, a credit card used for family expenses may be treated differently from a loan used by one spouse for a private purchase. A judge may also consider whether one person ran up debt after the couple separated.

In some cases, spouses can agree on a debt split in a settlement. That agreement can then be included in the divorce paperwork, as long as it follows state rules.

Steps that can help you protect yourself

It can help to gather statements for all loans, cards, and bills as early as you can. Make a list of each debt, the balance, whose name is on it, and what it was used for.

Try to avoid taking on new joint debt during the divorce unless you have legal or financial advice. If possible, keep records of payments you make and messages about who agreed to pay what.

If the process feels overwhelming, you can get matched with a family-law attorney who can explain how the rules may apply in your state.

• Collect recent statements for every debt account.
• Note whether the debt was for household, personal, or separate use.
• Check whether any accounts are joint or have a co-signer.
• Keep copies of payment records and divorce-related agreements.