Marital Debts after Divorce

Marital Debts Under Texas Law

In Texas, the treatment of debts and assets differs in divorce cases. While property acquired during the marriage is generally considered marital property, a person is only responsible for their spouse's debts if they acted as an agent for the spouse or if the debts were incurred for essential needs like medical care, food, and legal fees. Being married does not automatically make one an agent for their spouse. Moreover, community property is not affected by the liabilities of one spouse.

Debts are also divided differently than property in Texas divorces. A person's separate property is not accountable for their spouse's debts unless other legal provisions mandate joint responsibility. Additionally, a community asset controlled by one spouse is subject to the debts incurred by that spouse prior to the marriage and any liabilities resulting from tortious behavior during the marriage. However, such property is not responsible for debts of the other spouse before the marriage or debts incurred during the marriage that aren't linked to tortious conduct.

Marital Debts and Divorce Orders

Banks and credit card companies are not required to follow court orders in divorce cases. Therefore, regardless of how a debt is viewed by a court, if both spouses' names are on a loan or credit line, the lender will typically hold them both accountable for making payments. Consequently, after the divorce is finalized, it is crucial for the parties involved to take the necessary steps to remove their names from any debts they are no longer liable for.

For instance, if one spouse is awarded the marital home and is responsible for the associated debts, they should obtain a new loan in their name only or have the other spouse's name removed from any loan documents. Otherwise, if the responsible spouse defaults on the loan, the creditor may take legal action against both parties. In such cases, the affected party may seek a judgment against the responsible spouse.

Speak with an Experienced Divorce Attorney

Numerous couples accumulate debts during their marriage, and if they opt to dissolve their union, it's crucial to handle their financial obligations in an equitable manner. The attorneys at Wilson Whitaker Rynell specialize in managing legally and emotionally challenging issues related to property division. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.