Dividing Marital Debt In An Alabama Divorce

In Alabama, you are entitled to an equitable share of the marital property upon divorce. You may also be obligated to take on a portion of debt acquired during the marriage.

The division of marital debt is a common source of dispute in marriages, as many couples take on mortgages, credit cards and other lines of credit during the marriage.

How Is Debt Divided Upon Divorce?

There are two ways you can deal with debt upon divorce:

  • Pay off all debts prior to divorce.
  • Divide debt in the property division process.

In most cases, paying off debts prior to divorce is the best option, as it makes property division simpler. Furthermore, paying your debts will ensure that you do not face future lawsuits from creditors if your ex-spouse fails to pay his or her portion of the debt.

However, it is simply not always possible to pay off debt prior to divorce. When debt is divided, courts generally look at factors such as who incurred the debt and who benefited most from the debt.

If one spouse bought a luxury item on credit, for instance, and was the only person who enjoyed the purchase, he or she is likely to maintain the debt burden.

However, if a purchase enhanced the marital household and both spouses benefited from it, both may be responsible for the debt.

Many factors affect the distribution of marital debt. Our lawyers can guide you through these complex property division matters.

Contact Our Auburn Law Firm

Our divorce attorneys are here to discuss marital debt and other property division matters in Alabama. Call us today at 334-246-5299 to schedule your initial consultation.