Going through a divorce is already one of the hardest things a person can face. On top of the emotional weight, you may be wondering what happens to the bills, loans, and credit cards you and your spouse built up during the marriage. Understanding how debt is divided can help you protect yourself and plan for what comes next.
If you have questions about your marital debt right now, do not wait to reach out. Contact Bush & Taylor, P.C. today through our online contact form or call us at (757) 926-0078 to talk with an attorney about your situation.
What Is Marital Debt?
Marital debt is money owed that was taken on during the marriage. This can include things like a mortgage, car loans, credit card balances, medical bills, or personal loans. It does not matter whose name is on the account. If the debt was created while you were married, a court may consider it shared.
Debt that existed before the marriage is usually called separate debt. Each spouse is typically responsible for the debt they brought into the marriage. However, the line between marital and separate debt can become blurry over time.
How Does Virginia Handle Property Division?
Virginia is an equitable distribution state. This means that when a couple divorces, marital property — and marital debt — is divided in a way that is fair, but not always equal. A judge looks at many different factors before deciding who gets what and who owes what.
Equitable does not mean a 50/50 split. One spouse may end up with more of the assets and more of the debt, depending on the circumstances. The court aims to reach a result that is reasonable given the full picture of the marriage.
What Factors Does the Court Consider?
Virginia courts look at several things when dividing marital debt in a divorce. These factors help the judge figure out what is fair for each person involved.
Some of the things a court may consider include:
- How long the marriage lasted
- Each spouse's income, earning potential, and financial situation
- Who contributed to paying down the debt during the marriage
- The reason the debt was created and who benefited from it
- Whether either spouse wasted or misused marital money
- Each spouse's age, health, and overall financial needs
These factors are not a checklist where one item wins out. The judge weighs everything together to reach a fair decision. This is why two divorce cases that look similar on the surface can result in very different outcomes.
Can One Spouse Be Held Responsible for All the Debt?
Yes, it is possible for a court to assign most or even all of the marital debt to one spouse. This typically happens when the facts of the case point strongly in that direction. For example, if one spouse took on a large amount of debt for personal reasons that did not benefit the family, the court may hold that spouse responsible.
It is also possible for spouses to agree on their own how to divide the debt. If both parties reach a settlement outside of court, a judge will usually honor that agreement as long as it is fair and meets legal requirements. This is often a faster and less stressful path than going to trial.
What Happens If My Spouse Does Not Pay the Debt Assigned to Them?
This is one of the most common concerns in a divorce. Even if a court orders your spouse to pay a particular debt, the creditor — the bank or company you owe money to — is not bound by that order. If your name is on the account and your spouse stops paying, the creditor can still come after you.
This means that a divorce decree does not fully protect you from joint debt. You may need to take additional steps, such as refinancing loans, closing joint accounts, or monitoring your credit to catch problems early. Working with an attorney can help you think through these risks before you finalize your divorce agreement.
What About Debt Run Up After Separation?
Separation is the period when spouses live apart but are not yet legally divorced. In Virginia, debt taken on by one spouse after the couple has separated is generally considered that spouse's separate debt. The other spouse is usually not responsible for it.
However, there are exceptions. If you are still financially tied together — through joint accounts, for example — new charges could still affect both of you. It is important to take steps to protect yourself financially as soon as possible after separating.
Steps You Can Take to Protect Yourself
Taking control of your financial situation early in the divorce process can make a real difference. Here are some practical steps that may help:
- Pull your credit report so you know what accounts and debts exist in your name
- Close or freeze joint credit card accounts to prevent new charges
- Open individual accounts in your name only
- Keep records of all debt payments you make during the process
- Talk to an attorney before signing anything related to property or debt
None of these steps replace the advice of a qualified attorney, but they can help you start on solid ground. The more information you have, the better prepared you will be for negotiations or court proceedings.
Should You Try to Settle Debt Division Outside of Court?
Many couples are able to reach a property division agreement on their own or with the help of their attorneys. Settling outside of court gives you more control over the outcome. It also tends to be quicker and less costly than going before a judge.
That said, settling is not always possible or in your best interest. If your spouse is hiding assets, running up debt on purpose, or refusing to negotiate honestly, going to court may be necessary. An attorney can help you understand when it makes sense to push for a settlement and when to fight for a fair result in court.
Talk to a Suffolk Divorce Attorney About Your Marital Debt Today
Debt division is one of the most complex parts of a divorce, and the decisions you make now can affect your finances for years to come. Bush & Taylor, P.C. is here to help you understand your rights and work toward a resolution that makes sense for your life and your future.
Whether you are just starting to think about divorce or are already in the middle of property division disputes, our team is ready to stand by your side. Reach out to us today through our online contact form or call (757) 926-0078 to schedule a consultation. No consultation fee.