How do you divide debt after a divorce?

On Behalf of | Feb 21, 2022 | Divorce |

Are you planning to end your marriage in Texas? Divorce is an issue that brings a lot of financial problems to the surface. If you and your spouse have debts to deal with, getting divorced won’t necessarily put an end to them.

What kind of debts can you be liable for?

You should keep in mind that there are many kinds of debts that you can be liable for. These are debts that you will still be on the hook for even after your divorce is finalized. These can include debts related to any medical treatment that either party may have received in the past. It also includes the cost of any ongoing rehab or physical therapy.

There may also be debts related to vehicles that you own. This is especially true if the car is in both of your names and not yet paid for.

You may also be on the hook for debts related to the purchase of your home. If the property is in both of your names, you will have mortgage debt to divide.

You can also incur debts related to any credit cards that are in your name. You will normally not be liable for debts if the card is only in your spouse’s name.

How can you safely divide your debts?

There are a number of ways that you can divide your debts in a way that is agreeable to both parties. It’s a good idea to hire a divorce analyst to value all of your assets and liabilities so that they can be divided fairly.

You may want to arrange for an arbitrator to help you arrive at a fair settlement. Doing so could help you save time, energy and money compared to going to court.