Or, perhaps this blog post should be titled ‘Till Debt (DUE) Us Part.’
For many people, particularly the younger generations, debt has always been there. At least during our adult lives. Who doesn’t enter adulthood without some sort of debt, whether it be a car loan, credit card debt for incidentals, or the ubiquitous student loan debt. Although debt has always been a way of life, to some extent, it has exploded in the era of easy credit. Then in time there’s mortgages, your own children’s student loans, business debt, and so on. Debt has become its own currency. And as part of every divorce, we must consider the impact of debt.
Dividing Debt in a Divorce
It goes without saying that the same couple arguing over their right to split up the marital assets is also front and center seeking to disclaim debt. As though the assets are left and right pockets of the same pair of pants, but debt is decidedly their partner’s problem. But as with assets, martial debt is usually divided as part of a divorce. But what exactly is “marital” debt, and just how exactly is it divided?
Generally, any debt entered into by either party during a marriage is the responsibility of each partner to a marriage. If you got married in 2000, and divorce in 2025 with $60,000.00 in marital debt then you would, generally, each be responsible for one-half of that debt, or $30,000.00. You could offset this by having one party take on more of the debt in return for more of the assets, or you can even contemplate joint or individual bankruptcies, but the debt is generally both of your responsibilities, unless there is something really egregious going on, such as your spouse funding their paramour’s lifestyle. (And mere allegations of same would not be sufficient.)
Debts that Predate Marriage
For debts that predate the marriage, such as student loan debts, they are often kept separate at the time of divorce unless commingled. So, although it may not seem entirely fair, if you enter the marriage with $100,000.00 in debt at the time of divorce and your spouse with only $15,000.00, it will not be added together and divided by half. You will, likely, be responsible for your $100,000.00 and your spouse for their $15,000.00.
Mortgages, car loans, and the like, are often deducted from the value of an asset and then divided evenly, unless there are exceptions.
Special Exceptions to Debt Division
Arguments can be made about how to divide debt for your children’s college, but most of that will come down to whose name the debt is in, whether it is your own name or names or your child’s. Generally, a debt in one or both of your names for the college debt of your child during the marriage will be each of your responsibility.
The above is a shorthand for how things generally turn out, but obviously your unique circumstances will determine exactly how debt is handled. Generally speaking, you should negotiate the debt portions of your equitable distribution for your divorce just as you would your assets.
Debt can be a tough reality as part of a divorce, in many instances too much debt has created the financial difficulties that have heightened marital tensions. Unfortunately, in most instances, getting divorced is not a way to be free of your debt, but rather a way to divvy it up. By working with an experienced divorce attorney, you can help ensure that your marital debt is handled in a fair and efficient manner.
