Splitting up property and assets and figuring out child custody are well-known aspects of a divorce. However, the implications of splitting up assets go deeper than physical items. Certain financial items such as loans and other debts need to be reallocated as well. Many couples will share debts, and when those are split, both parties then become responsible for taking their own share of debts. Many couples make the mistake of keeping debts in both of their names, and if one partner starts falling behind on payments, the other has to deal with that burden.
How Is Debt Split up in a Divorce?
Debt is often not split down the middle. Factors such as income, age, health, and education are considered to decide who gets what share of the debts.
Are your debts marital or separate? Debts like mortgages that are in both partners’ names would be considered marital. Credit cards that have one partner’s name on them would be considered separate. Certain student loan cases have found that both parties are responsible for the loans, but in most cases the partner that signed the loan is responsible. Just because a spouse is included on a debt account as an authorizer, doesn’t mean they are responsible for repaying the debt.
During the splitting of assets and debts, things can get very complicated. It is easy for tensions to arise when finances and personal property are at stake. A Lewisville divorce attorney can offer advice from experience, and make sure you and your partner avoid financial problems when splitting assets and debts.