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Who is responsible for debt after divorce?

| Sep 25, 2020 | Property Division

For many couples, the decision to end a marriage does not come easily. Even if it is the best choice for their independent futures, the process can be complicated by numerous meetings and challenging decisions. The financial negotiations centered around the division of assets and debts can lead to difficult discussions and heated emotions.

Over the course of a marriage, a couple will likely amass both significant assets and debts. In essence, the longer the marriage, the more there is to divide. While the division of assets generally carries a positive connotation, the division of debt responsibility carries the burden of negative cash flow. While arguments will abound about whose idea it was to purchase the car, who signed for the credit card purchases or who ultimately benefited from the medical procedure, debt division can be a complicated burden.

These examples form the basis of numerous debt division arguments.

  • Credit card debt: Whether only one party’s name is on the card or it is a shared account, the argument will be made that both parties shared in the benefit of various purchases so both parties must split the debt responsibility.
  • Medical debt: As an equitable division state, debt acquired in Colorado is generally considered marital property. In that scenario, you will likely have to split medical debt even if the procedure was for your spouse.
  • Car loans: A car loan could potentially be complicated based on the vehicle usage.
  • Mortgage debt: In general, divorcing couples can decide between selling the property and dividing the profits or one party buying out the other for sole ownership.

No matter the complications you are facing, an experienced family law attorney can provide the answers and guidance you need. Trust a lawyer to get you through the divorce process from start to finish.