When going through a divorce, one of the most difficult aspects to navigate is the division of debt. Unlike property, which can often be physically divided, debts are intangible and can be trickier to assign fairly. However, it’s essential to address joint debts to avoid future financial complications. At Jones Family Law, we help our clients understand how joint debt will be treated during a divorce and offer strategies for managing it effectively.
Understanding Joint Debt
In Missouri, like many states, the court views joint debt as marital property, meaning both spouses are typically responsible for paying off debts incurred during the marriage. This includes mortgages, car loans, credit cards, and personal loans that both parties are listed on. Even if one spouse is awarded the property or asset tied to the debt, they are still accountable for it, unless otherwise stated in the divorce settlement.
How Debt Is Divided
Debt is often divided based on what’s considered “equitable,” meaning the division doesn’t necessarily have to be equal, but rather fair considering the circumstances. Factors such as income, the ability to repay, and the role each spouse played in acquiring the debt are taken into account. In some cases, the court may order one spouse to pay a larger portion of the debt.
Protecting Yourself from Future Debt Issues
It’s critical to ensure that joint credit accounts are closed or restructured during the divorce process. Even if the divorce agreement specifies who will pay a particular debt, creditors may still pursue both spouses for payment if they are still jointly liable.
At Jones Family Law, we work closely with you to ensure that debt division is handled fairly and that your financial future remains protected. If you’re facing divorce and need assistance with debt division, contact us today for personalized legal guidance.