How to Handle Debt in Divorce: Who Pays for What?

A divorce is a difficult time, but it is even more complex when dealing with the debts of your marriage. Understanding how to proceed can seem daunting, but is best handled with the help of an experienced Missouri divorce attorney. Your legal counsel can walk you through the allocation and payment of debts to streamline your divorce and ease the stress you face.

At Columbia Family Law Group, LLC, we explain how to handle debt in divorce. Our attorneys explain who will pay for what and the best way to manage your marital assets. Schedule a consultation to get started.

Understanding Equitable Distribution and its Effect on Marital Debt

Missouri courts utilize equitable distribution when reviewing your finances. This includes both your assets and your debts. The point is to divide your debts and assets equitably between the parties. The judge overseeing the case distributes the parties’ property and liabilities in a way that is fair to both parties.

Most judges start with the general idea that marital debts should be divided equally. Certain factors may alter this supposition. This is where “equitable” distribution comes in. Equitable does not always means “equal” but is focused more on fairness considering all of the circumstances.

Factors Missouri Courts Consider When Allocating Debts

If exactly equal distribution would be unfair for any reason, the parties must present evidence to the judge as to why. Factors a Missouri judge may consider when dividing debts includes, but is not limited to:

• The other spouse unilaterally and unfairly created the debt
• One spouse inappropriately disposed of marital assets
• A spouse attempted to hide assets
• The other spouse has a gambling, drug, or other problem that affected the parties’ finances
• One spouse spent marital assets on an affair

There are many other factors that might affect the equitable distribution of debts in a divorce. Your divorce attorney is highly experienced in handling these issues.

Can You Agree How to Allocate Debts in a Divorce?

You are allowed to reach an agreement regarding your property distribution, including as to your debts. If you can reach an agreement, this saves costly legal battles and a great deal of stress. You may both decide who is responsible for which debt and which you will handle jointly. This puts you in better control of how your marriage ends and the effects it has on your life.

The best way to negotiate any agreement in your divorce is with the skilled help of a divorce attorney. A Missouri divorce lawyer understands how to speak with your spouse and their attorney. They have countless strategies designed to resolve disputes whenever possible. Your attorney is also highly skilled at litigating any issues that cannot be resolved by agreement.

Allocating Individual Debts

Not every debt is a marital debt. Some are incurred in your personal name or the personal name of your spouse. This is most often the case when the debt was incurred before the marriage. 

For example, if a spouse came into the marriage with a significant amount of credit card debt, you may be not be responsible for it. It will not be considered as part of the equitable distribution in those scenarios. This is highly fact-dependent based on your specific situation.

Get Help With Marital Debts During Your Missouri Divorce

You do not have to deal with a divorce on your own. Allocating debts, assets, child care, and much more are difficult legal issues best handled by a knowledgeable divorce attorney.

Our team at Columbia Family Law Group, LLC can help you handle debt and determine who will pay it in your divorce. Contact us today for a consultation of your case.