Divorce and Division of Debt

In the event of a divorce, many parties focus primarily on the division of property, assets, and child custody, with little attention given to debt division. If you are going through a divorce, you should keep in mind that debts are usually divided among the parties, just like assets.

When dealing with the stress of a divorce the last thing you may want to think about is your debt, but putting the issue off now could lead to bigger problems later. Consulting with a property division lawyer early on in the divorce can help determine exactly which debts are considered community property. The Austin divorce lawyers at Slater, Kennon & Pugh Ltd.LLP can help to clarify how much debt you will be responsible for after your divorce.

Community Property and Debt

Any debts acquired during marriage are legally defined as community property debts. This means that both you and your spouse share equal responsibility for the money owed. Unless the property belonged explicitly to one party, the debt owed is split between you and your spouse.

How to Determine Community Property Debt

You may think that if you had little to do with a credit account and your spouse took primary responsibility for making payments, then you have no responsibility for any debt incurred on the account. While this may be the case, you need to look at the details of the setup of the account to be sure. Often both spouses are involved as parties to the credit agreement on the account.

If you are unsure about whether or not you share responsibility for an account, obtain a copy of your credit report. A good rule of thumb to follow is that if an account appears on both your and your spouse’s credit reports, the debt will be shared following divorce, despite your level of involvement in accruing that debt.

Contact Us

If you are unsure about the debts you face or would like clarification on the legal division of community property debts after a divorce, contact the experienced Austin debt division lawyers of Slater, Kennon & Pugh Ltd.LLP today at 512-472-2431.