How is debt divided in a divorce?

Debt division in divorce generally follows the same principles as asset division in your state. In community property states, debts incurred during the marriage are typically considered joint debts and are divided equally. In equitable distribution states, debts are divided in a manner the court considers fair, which may or may not be equal.

Common types of debt that are divided in divorce include mortgages, car loans, credit card debt, student loans, medical bills, and personal loans. The key distinction is usually whether the debt was incurred during the marriage for marital purposes or whether it is the separate debt of one spouse.

Student loans taken on before marriage are generally considered separate debt. However, student loans incurred during the marriage may be treated differently depending on the jurisdiction and whether both spouses benefited from the education.

Credit card debt can be particularly complicated. Even if a credit card is in only one spouse's name, if it was used for marital expenses, it may be considered a joint debt. Conversely, if one spouse secretly accumulated debt for non-marital purposes, a court may assign that debt solely to that spouse.

An important practical consideration: a divorce decree does not bind creditors. If a joint debt is assigned to your spouse in the divorce but they fail to pay, the creditor can still come after you. This is why many attorneys recommend paying off joint debts as part of the divorce settlement when possible.

DIVORSAY's ClearSplit calculator accounts for both assets and debts, giving you a complete financial picture of how division might work in your state.