How does debt affect divorce?
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How does debt affect divorce?
As part of the divorce judgment, the court will divide the couple’s debts and assets. Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another. For example, a spouse who receives more property might also be assigned more debt.
Who is responsible for debt in a divorce?
A court will generally take the position that debts accrued during the relationship, either jointly or individually, were for the mutual benefit of both parties with mutual knowledge or consent of the other party and therefore responsibility is shared by both parties.
Is a wife responsible for her husband’s credit card debt?
If you are a joint account holder on your husband’s credit cards, you will likely be responsible for the debts on those credit cards. As a joint account holder, you share full responsibility for the debt under the terms of the contract, even if you didn’t make the charges.
How is debt calculated in divorce?
Ultimately, the courts will determine how to divide marital debt in a divorce. For them, the person who borrowed the money is the responsible party, and they will reach out to that person in order to collect on the debt.
