Marriage is meant to be a lifetime commitment which is why couples get into long-term debts like mortgages. But what happens when they decide to go separate ways?
Without a repayment agreement between you and your former spouse, divorce can interfere with your financial plans, and it is common to wonder what will happen to the debts you had incurred together. Will they be split equally? What if you are left with more debt than you can manage? Here is what you need to know.
Debt is divided equitably
Debt can either be personal or marital, and only the debt you acquired as a couple is up for division. Personal debts or those you incurred before marriage are not affected by a divorce. Usually, laws at the state level determine how property and debt are divided in case of a divorce.
Georgia is an equitable distribution state, which means that your debt will be divided based on fairness and equity. In some cases, the debt assigned to you may not be equal to your ex-spouse’s. There are no hard and fast rules for debt division, but the court may consider these options.
- Your income level or the financial position the divorce leaves you in
- Your contribution to the debt
- Any outstanding debts
Dealing with marital debt
The best solution lies in having a mutual agreement between you and your ex-spouse that both of you will commit to repaying their part of marital debt. Even if the court assigns a debt to your ex-spouse, it does not absolve you of liability. It means that creditors can still legally come after you if your ex-spouse defaults on payments.
Therefore, it is important to navigate the process of dividing debt carefully and avoid future complications.
