Debt Division in Divorce

Classifying Debt in Texas Divorces

Determining the division of debt in a Texas divorce case starts with establishing whether the debt is part of the marital estate. As Texas follows community property law, most property acquired during the marriage is considered community property, and both spouses have an equal interest in it. This includes both assets and liabilities. Thus, any debt incurred during the marriage is subject to division between the spouses upon divorce. Examples of such debts are car loans, credit card debts, or mortgages. However, some debts may be considered separate and will follow only the borrowing spouse after the divorce.

Debts that are not part of the marital estate are separate debts, which belong solely to the borrowing spouse. One example of separate debt is debt incurred by a spouse before marriage. A prenuptial agreement may be used to specify separate and community property and may also designate debts incurred during the marriage as separate property.

What if my Spouse Collected Most of the Marital Debt?

In Texas, debt division in a divorce is typically split equally between the spouses, although there are exceptions. Under Texas law, a court must divide marital property and liabilities in a manner that is "just and right." While this does not necessarily mean an even 50-50 split of property and debt, courts consider various factors to determine if a different division is warranted. For instance, if one spouse was primarily responsible for incurring the debt, the court may adjust the division of liabilities accordingly. A family attorney can assist you in determining whether you have a valid case for a "just" division of debt.

Marital Debt Division Options

Determining how debt is divided in a Texas divorce can be complex and depends on various factors. An experienced family law attorney can help you navigate the process and determine the best solution for your situation. Some options for dividing debt in a divorce include splitting it equally, selling joint property to pay off debts, each spouse taking responsibility for the debt attached to the property they want, or one spouse taking on more debt because they have primary physical custody of the children.

It's important to note that if the spouses cannot agree, a court-ordered debt division is standard. During the divorce hearing, the court will consider several factors and make a decision on how to divide the community property and debt between the spouses. In most cases, the court will approve an agreement reached by the spouses.