In a divorce, everything gets divided, including debts. While most couples will end up focusing on who gets to keep certain assets, the fact is that you should also keep an eye out for how your debts will be divided and ensuring you do not get saddled with any debts that should not be assigned to you. Generally, only debts you incurred before your divorce are considered separate and debts you incurred during your marriage are considered communal.
Splitting Up the Debts
Dividing debt during a divorce can be complicated, so you and your spouse should consider paying them off before dissolving your marriage, if possible. If one of you ends up in financial trouble and cannot pay off the marital debts assigned during the divorce, creditors may pursue the other spouse for payments. Settling your debts now can help you avoid this altogether.
If the debt you owe is mortgage debt, typically the best solution is to sell the house and split it for a clean break. However, if you or your former spouse wants to keep the home and can afford it, that spouse can buy out the other. If the mortgage company refuses to remove your spouse’s name from the agreement, you can choose to refinance it without your ex’s name on it.
Not everyone can afford to pay off their debts before a divorce. While both of you will be responsible for all joint debts, if your spouse racked up any debts on a credit card that was solely in their name, it is unlikely you will be responsible for it. Ohio is an equitable distribution state, which means assets and debts are divided fairly instead of equally. With an experienced divorce attorney on your side, you can stand a better chance of ensuring you are not responsible for debts that should be assigned to your former spouse.
Schedule a Consultation with an Experienced Family Law Attorney Today!
If you are divorcing your spouse and have concerns about marital debts, a skilled attorney can assist you and ensure you receive the best outcome. At Crossman & McNamee, LLC, our experienced divorce team has the knowledge and insight necessary to effectively advise you throughout this complex legal process. You can rely on us to protect your best interests.
Reach out to our legal team today at (937) 468-3796 to set up an initial case review to discuss the details of your case with one of our attorneys.