There are many kinds of debt that a person can accrue during their life. Everything costs something, and if you cannot pay, then you take out a loan. When it comes to debt and divorce, the most important factor isn’t what the debt is related to, but whether it is considered marital debt, as in debt that spouses accrued during the marriage.
Debt is a difficult topic to broach, especially if your relationship with your spouse has deteriorated. Because every individual case is different, we can’t say exactly what debt will be split in the divorce proceedings, but the following types of debt can typically be divided up between divorcing couples:
Mortgages
Credit card debt
Auto loans
Medical debt
Personal loans
Non-marital debt would be any loans or debt that one spouse got before the marriage. However, a couple can ensure that a loan is considered non-marital so long as they sign an agreement stating so. Similarly, if a debt was inherited, perhaps because it was attached to a house that was left to one spouse, that may also be considered non-marital.
One of the best ways to avoid being saddled with debt that isn’t yours is to create a pre-nuptial agreement. This contract allows you to specify who owes what. We always recommend that anyone planning on getting married puts together a prenuptial agreement with their partner and has it looked at by a skilled family law attorney. If you married before signing a prenup, then a postnuptial agreement may still be able to help you decide who exactly is taking on what debt.