Just because a debt was run up during the marriage does not always mean both spouses are liable. To be liable for a spouse’s debt depends on the type of goods or services the debt purchased and which property the creditor is trying to get. Basically, if your name is on the debt, you must pay for it. There is no community debt as such. EXCEPTION: the exception is if the debt was run up for life’s necessities, such as food, clothing, housing, maybe those connected to automobiles, both spouses are liable. I should also mention that even though a spouse is not obligated to pay a debt, payment of debt can be agreed to and made part of a settlement.
Going through a divorce can be one of the most challenging periods of your life. Things are likely to be difficult both emotionally and financially even if the split is amicable. Moreover, divorces can quickly turn messy and have the potential to be incredibly expensive. Unfortunately, time is often the only thing that can finally […]
Finances may not be the top concern when a marriage comes to an end but sooner or later, you are bound to find yourself asking important questions about who is responsible for the debt. How debt is divided in a divorce can depend on many factors, including the type of debt, the agreement with creditors, […]