Since there are many different types of debts, they are all handled uniquely during a divorce. For example, you can have credit cards, mortgages, car loans and medical debts.
Here is more about how the court will handle your debts during a divorce.
Debt after separation and before divorce
You can continue to incur debts after your separation but before your divorce. When this happens, individuals are responsible for the debt they incur.
Credit card debt in your name
You are responsible for the credit card debt you incurred under your name. You are not responsible for your spouse’s debt if they put it on their accounts. You could be liable for half of the debt if it is a joint account.
Car loan debt
Car loans that are in both of your names are problematic in divorces. In most cases, one of you will keep the car and deal with the payments. However, that can cause problems for you. If your spouse gets the car and does not make the payments, they will incur more debt. Your name is still on the loan, and your credit will tank.
If you have a tricky financial situation and are going through a divorce, you should consider speaking to a credit counselor or another professional. These individuals will likely have seen cases that are similar to yours. They also know the laws and the nuances of splitting debt. You can find credit counselors for free if you are having financial troubles. They can help you manage your debt and get back on your feet financially.
