Debt and Divorce: Who Pays What?

Divorce is often a complex and emotional process, and one of the most challenging aspects can be dividing marital debt. In Washington State, a community property state, debt acquired during the marriage is typically considered shared responsibility, regardless of whose name is on the account. However, the division of debt is not always equal, as courts consider various factors when determining who pays what.

Understanding Community vs. Separate Debt

In Washington, debts incurred during the marriage are generally classified as community debt, meaning both spouses are responsible. Separate debt, on the other hand, includes obligations one spouse incurred before marriage or after separation. Additionally, certain debts, such as those related to one spouse’s misconduct (e.g., gambling or hidden expenditures), may be assigned solely to that individual.

How Courts Divide Debt

While Washington follows community property laws, courts strive for a “just and equitable” division rather than an automatic 50/50 split. Factors that influence debt allocation include each spouse’s financial situation, income, earning potential, and who benefited from the debt. Courts may also consider agreements between spouses, such as prenuptial or postnuptial agreements.

Secured vs. Unsecured Debt

Secured debts, like mortgages and car loans, are usually assigned to the spouse who retains the asset associated with the debt. Unsecured debts, such as credit cards and medical bills, are often divided more flexibly based on fairness and ability to pay. Refinancing or selling assets may be necessary to resolve secured debts if neither spouse can afford to take them on.

Protecting Yourself from Post-Divorce Debt Issues

Even if a divorce decree assigns a debt to one spouse, creditors may still hold both parties responsible if the debt was jointly incurred. To protect against financial fallout, consider refinancing loans, closing joint accounts, and ensuring debts are properly transferred or paid off. Legal counsel can help navigate these complexities to avoid unexpected financial burdens post-divorce.

Debt division in a Washington divorce can be complicated, and the outcome depends on multiple factors, including fairness, financial circumstances, and legal agreements. If you are going through a divorce and have concerns about marital debt, consulting with an experienced attorney can help ensure your financial interests are protected. Contact the Law Office of Erin Bradley McAleer today for guidance on your case.