What Happens to My Debt If I Get a Divorce?
Posted on Jun 24, 2015
In Texas, property is viewed as separate or community. If you are married, unless there is clear and substantial evidence to the contrary, any assets that are acquired during the marriage are deemed to be owned one-half by the husband of the marriage and one-half by the wife of the marriage. This includes debt.
Where to start?
To begin to figure out what debts would be your responsibility, you first need to update yourself on your finances. Knowing what you have is a must! Find out what your assets and liabilities are, especially if you are the spouse who does not handle the money in the marriage. Know where money is spent, your income, your spouse’s income, your debt, your spouse’s debt, and what debt you have accrued together. This will help determine what debts would be your responsibility.
Do you have a premarital agreement?
Did you and your spouse sign a premarital agreement? Having a prenup can be a game changer when splitting up debt. A premarital agreement in the state of Texas can protect your spouse and community property from your debts. In turn, if your partner has a large amount of debt, it can protect you from being responsible for those debts during and after divorce. It’s important to read your prenup thoroughly in order to find out how debts are to be split in the event of divorce.
For a more detailed discussion about debts and how certain kinds of debts are handled, contact a qualified family law attorney. Knowing what debts you have before filing for divorce can help you be prepared for what’s to come.