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How is marital debt divided during divorce?

Whether you are worried about losing the family home or who will be awarded custody of your child, divorce can generate a number of stressful issues. However, property division matters can be particularly complicated and may affect your financial future in different ways, such as the distribution of your marital debt. If you live in Salt Lake City, or another Utah locale, you should attempt to understand how courts in Utah decide to split up marital debt.

According to the Utah Courts, spouses usually share the responsibility of marital debt that was acquired for family-related reasons. However, those who retain property that has outstanding debt, such as a vehicle with an auto loan, will usually be responsible for paying the debt on that property. Unless one party agrees to cover their spouse's personal debt, courts usually decide that a spouse is not responsible for his or her spouse's personal debt.

If you and your spouse can come to an agreement on the division of your marital debt, your agreement will be part of your divorce decree. Depending on the details surrounding your divorce, the distribution of marital debt may move forward smoothly or create serious financial roadblocks in your life. As a result, you should be prepared for the possible impact of dividing debts and other financial matters associated with divorce.

It is vital to remember that this post, which was written to shed light on the division of debt during divorce, is not being offered as a replacement for legal counsel.


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