Just as spouses must divide all the assets they accumulated during their marriage, they must also divide all the debts they incurred. Even if some debts are only under one spouse’s name, it may still be assigned to both parties, unless a judge determines it was wasteful dissipation. For example, if your spouse racked up a lot of debts on expensive hotel rooms for an extramarital affair, you will not be on the hook for those expenses.
Dividing Debt During a Divorce
Typically, family courts in Texas will divide debt as equally as possible, unless you have a prenuptial agreement that clearly states how such matters will be handled. If you do not have a prenuptial agreement in place, however, you might want to consider settling your debts, if possible, before the divorce is finalized. Doing so will be beneficial for both you and your spouse since it will eliminate the worries either party may have if the other fails to pay.
When one party fails to pay off debts that were assigned during the divorce process, creditors can go after the other spouse for payments, which can create a lot of chaos and frustration. Under these circumstances, you can petition the court to enforce your divorce agreement and, as a result, your former spouse may face a steep fine or jail time. If you can make the payments, it is often easier to do. However, keep proof of the payment and notify the court, so you can receive reimbursement from your former spouse.
Having unresolved debts looming over you can always feel stressful, so if you and your spouse can agree to address them, this is usually the best option for everyone involved.
Reach Out to Our Skilled Divorce Team to Discuss Your Case Today!
Divorce can get messy, especially when spouses have a lot of debt between them. To ensure you receive the fairest possible results and are not responsible for any separate debts, you will need to hire an experienced divorce attorney. At Cynthia Tracy, Attorney at Law, P.C., our knowledgeable family law team is backed by more than 35 years of combined experience. You can rely on us to provide tailored solutions that address your unique goals.
Call our legal team today at (281) 612-5443 to set up an initial case review with one of our divorce attorneys to discuss your case.