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How to handle debt in a divorce

| Jun 29, 2021 | Family Law |

Division of debt incurred during the marriage can be a difficult issue in any Connecticut divorce. This is particularly so if the couple took out loans jointly. This is something that you cannot overlook because it could end up leaving you in debt and your credit in tatters.

Debt is given to the spouse who incurred it

Connecticut is not a community property state. This means that the debt is not automatically split down the middle in the divorce. The general rule is that the spouse who incurred the debt is responsible for paying it. The issue is when the debt is in both spouse’s names, such as a joint credit card. You then may end up finding yourself having to pay debt that you did not personally incur yourself, but it is still in your name.

Make sure to handle all debt in the divorce

You should be conscious of debt the minute you decide to end the marriage. Take quick steps to close all joint credit accounts. Even if you are separated, you are still responsible for debt incurred in your name in joint accounts. Do not give your spouse the opportunity to put you in the path of financial harm. You should try to work out debt matters before the divorce so both of you can begin to rebuild your financial life. Otherwise, make sure that the marital settlement agreement clearly deals with all of the joint debts to avoid any later surprises.

A family law attorney could help you negotiate the divorce agreement to effectively deal with all of the debt. You should have a lawyer to financially protect you because there are some dangers in the divorce. Asset division should go along with splitting the debt, so you do not end up with no money to pay back what you owe.