Divorce And Marital Debt Division
Debt can be a huge issue in a divorce – especially when the marital debts are substantial or have been accrued unequally by the parties. At Jolein A. Harro, P.C., with offices in Littleton and Steamboat Springs, Colorado, we handle cases involving all types of marital debt.
At our law firm, attorneys have handled divorces involving many different types of debt such as:
- Credit card debt
- Medical debt
- Student loan debt
- Business debts
- Debts in Chapter 13 repayment plans
People who divorce with substantial debt must consider their financial options so that they can move forward with their lives. Sometimes starting over means thinking about bankruptcy. Some of these debts may be dischargeable in bankruptcy, while others – like spousal maintenance or child support – may not. It is important to consult with a lawyer about your unique situation.
What You Should Know About Creditors And Your Divorce
In Colorado divorces, courts divide marital assets, and then divide the debts. Debts are divided just like assets. It doesn’t matter to whom the debt is titled if it occurs during the marriage. There are specific instances when debt accumulated during the marriage is assigned to one party or when debt accrued due to “marital waste” is assigned to one party.
Even though you may have an agreement with your spouse about the payment of debts, the creditor isn’t a party to the agreement. That means a separation agreement or a contract between you and your spouse doesn’t protect you from collection efforts by the creditor.