When a marriage ends, spouses must divide their marital assets. They must also divide their debts, however. If you both have unpaid debts, you might be wondering what will happen and who will be responsible for it. If the debt was accumulated during your marriage, it will likely be split between you and your spouse, much like your assets. However, if it was accumulated before you took your vows, the spouse who incurred the debt will be responsible for it.
Debt and Divorce
Texas is a community property state, which means the debts you or your spouse incurred during the marriage may be considered community property. Unlike most community property states, however, family courts in Texas often analyze a couple's debts to determine who incurred which debts, when, and for what purpose. If you or your spouse incurred debt for necessities that benefit the family or to maintain jointly owned assets, such as repairing a leaky roof on the marital home, this would be considered joint debt. If your spouse hid certain debts incurred during the marriage, or wasted marital assets, a judge will likely award the other spouse a larger share of assets to make up for the loss.
To simplify this situation, you and your spouse may want to consider paying off your debts before embarking on the divorce process. Otherwise, creditors may still go after you to settle certain debts if your spouse fails to make the necessary payments. If you and your spouse cannot pay off your marital debts, try to settle as much as you can. The fewer debts you have going into your divorce, the less you will have to worry about during and after the process of dissolving your marriage.
Discuss the Details of Your Divorce with a Knowledgeable Family Law Attorney Today!
If you are pursuing a divorce and you and your spouse have a considerable amount of debt, do not hesitate to hire experienced legal representation. At Labovitz Law Firm, our knowledgeable family law team is committed to helping clients navigate some of the most challenging family law matters and will provide the guidance you need to overcome your legal obstacles. No case is too complex or too small for us to handle.
Reach out to our law office today at (817) 374-4056 to set up a free initial case review to speak with a member of our team and learn more about your rights and legal options.