Debts incurred in your marriage, such as car loans, joint credit cards, mortgages and personal loans for family expenses, will affect your divorce. This is because they are considered community property.
Here is how debt is handled in Texas divorces:
Just and right division
Debt incurred during marriage is divided in a way that is “just and right” in Texas. This does not necessarily mean it will be split 50/50. The court will consider several factors to determine how each party will be responsible. Examples of factors considered include the financial standing and earning capacity of each party, the length of the marriage and each spouse’s contributions to the marriage.
The court may also consider financial misconduct when determining how to split a debt. This means if a spouse incurred a significant debt without the other’s knowledge or whether a debt was used for the family’s benefit or a spouse’s own benefit.
A divorce involving debt may result in an equal split where spouses are responsible for an equal share of the debt or a disproportionate split, which entails one party paying a significant percentage of the debt. It’s also not uncommon for the court to order one spouse to pay a debt even though both parties are liable.
What if your ex-spouse doesn’t pay a debt?
If, after the divorce, your ex-spouse does not pay a joint debt according to court orders, the creditor can still pursue you. They may require you to pay the loan, and if you don’t, this can negatively impact your credit score. Thus, it’s crucial to understand how you can protect yourself from the word go.
Debt affects divorce cases substantially. If your divorce involves debt, consider legal guidance to protect your interests and future.