What are liabilities in a divorce?
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What are liabilities in a divorce?
In addition to the division of property and assets in a divorce, the two parties may be required to divide debt and other liabilities as well. This may include debt on shared credit card accounts, mortgages, and outstanding bills for goods or services purchased during marriage, to give some examples.
Are you responsible for spouse’s debt in a divorce?
You are not responsible for your partner’s debts just because of your relationship, whether you are married or not. However, you may have become liable for his or her debts because you signed a loan contract as a joint borrower or guarantor, or because you were a director of a family company or a partner in a business.
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.
