When a marriage ends, it is not just about dividing property. Debt also has to be dealt with. A lot of people are surprised to find out that both spouses may still be responsible for some debts even after the divorce is final. A Connecticut divorce lawyer can help you understand how debt is handled and what you may be expected to pay.
What counts as marital debt in Connecticut?
In Connecticut, courts can divide debts of either spouse, whether they were incurred before or during the marriage, based on what the court finds fair. This can include things like mortgages, car loans, personal loans, and credit cards.
It doesn’t always matter whose name is on the account. The court may consider how and why the debt was created when deciding how to assign responsibility, along with other fairness factors.
Debt that one spouse had before the marriage or used only for their own personal purposes, on the other hand, may be handled differently.
How do Connecticut courts decide who pays what?
Connecticut is an “equitable distribution” state. This means that the court tries to split things up fairly, but not always equally.
When judges decide how to split up property and debt, they think about a lot of different things. These can include how long the marriage lasted, how much money each spouse made, whether they could pay, and how the debt came about.
The goal is to come to a conclusion that makes sense given the whole situation, not just to split everything in half.
Does it matter whose name is on the debt?
Yes, but not always in the way people expect.
The court can assign responsibility for debts of either spouse, even if the debt is only in one person’s name, based on what it finds fair. For instance, if one spouse got a credit card to pay for household expenses, both spouses may be responsible for that debt.
But the divorce order doesn’t have to be followed by lenders. If your name is on a loan or credit card, the creditor can still expect you to pay, no matter what the divorce says.
What kinds of debt are usually divided?
Many types of debt may come up in a divorce. Some of the most common include:
- Credit card balances used for household expenses
- Mortgages on the family home
- Car loans
- Personal loans
- Medical bills
- Student loans taken out during the marriage
Each type of debt may be treated differently depending on the facts of the case.
Can one spouse be stuck with all the debt?
Yes, in some cases, one spouse may be assigned more debt than the other. This can happen if one person has a higher income or a greater ability to pay.
It can also happen if one spouse was mainly responsible for creating the debt, or if they are keeping certain assets tied to that debt, like a house or a car.
The court is not required to split debt evenly. It only needs to make a fair decision based on the circumstances.
What happens if your ex does not pay a debt?
This is where things can get tricky.
If a divorce order says your ex is supposed to pay a debt, but your name is still on the account, the creditor can still come after you. The divorce order does not change your contract with the lender.
If your ex fails to pay, you may need to go back to court to enforce the order. This could include asking the court to hold them responsible or require them to reimburse you.
How can you protect yourself during the process?
There are steps you can take to reduce the risk of problems later on.
- When you can, close or freeze joint accounts
- Refinance loans to take one spouse’s name off of them
- Write down all of your debts and payments
- Make sure the divorce agreement makes it clear who is responsible for what
- Keep an eye on your credit after the divorce
You can avoid surprises after everything is done by doing these simple things.
Talk to someone who can help you move forward
Your financial future can be affected for a long time by debt. A divorce lawyer in Connecticut can help you understand your choices, look out for your best interests, and work toward a fair outcome.
Every case is unique, and even small things can have a big effect on how debt is split up.
You don’t have to figure out debt on your own if you’re getting a divorce and have questions about it. With the right legal advice, you can avoid making mistakes that could cost you a lot of money and plan for the future.
Merino Family Law helps clients understand their rights and duties during divorce, such as how to deal with marital debt. Call (203) 810-9004 or fill out our online contact form to set up a meeting with a Connecticut divorce lawyer.