After couples get married, they often take on significant amounts of shared debt. They may co-sign on a car loan together, for example, or open a shared credit card account.
During divorce, these marital debts often have to be divided just like marital assets. Both people on a joint credit card account are responsible for that debt, for example. Some people will be proactive about this by paying off the debt during the divorce, closing the account and opening a new account in just their own name. But with significant amounts of debt, couples may also have to divide it during property division.
When things get complicated
That said, the status of a certain debt can sometimes become complex. Say that someone took out an individual loan during their marriage. Does that count as a marital debt that is owed by both spouses, or is it a separate debt in just one person’s name?
Often, when debts come from before the marriage, they do still qualify as separate debts and do not have to be divided.
For example, perhaps someone took out student loans to go to college, where they met their spouse. They are still paying those loans back during the marriage, but they are likely a separate debt that only they are responsible for after a divorce. On the other hand, if someone went back to school while they were already married, and the couple took out student loans together, those could be a marital debt that needs to be divided, even though only one person attended classes.
Naturally, these complexities can lead to disputes during divorce cases, and it is important for couples to know exactly what legal steps to take.