Divorce is a draining experience on both emotional and monetary resources. Child custody arrangements are an essential aspect of every divorce in which children are involved. Marital assets such as cash, vehicles, and real estate must be divided between you and your spouse.
You and your partner can have joint debts including vehicle loans, credit card balances, and a mortgage. Divorce requires the division of debts as well as assets.
A common question is whether or not the debt is split in a divorce in Texas. Many clients have benefited from the experience of the divorce lawyers at Ramos Law Group in developing plans for the equitable distribution of their property and obligations.
Financial Burdens on the Neighborhood
Texas divorce law requires that debt be included in the marital estate before it may be divided. Property in Texas is held by joint owners. This indicates that the majority of the property acquired by either spouse during the marriage is jointly held by both parties.
Assets and debts acquired during a marriage are considered part of the estate. This means that any debts accumulated during the marriage will be divided equally between the two parties. Joint debt includes things like a mortgage, auto loan, or credit card balance. Divorce does not affect all debts; those that are designated “separate” go with the borrower’s spouse.
Independent Financial Obligations
Debts incurred before the marriage do not affect the marital property. Instead, the borrower’s spouse is exclusively responsible for repaying the individual obligation. Debts incurred by one partner before marriage might be considered distinct debt.
Separate and communal property are typically spelled out in a prenuptial agreement. Debts incurred before or during the marriage may also be designated as distinct property.
It’s important to remember that putting a debt in the name of only one partner does not make it disappear. The debt is considered communal property if it was incurred during the marriage.
If my spouse racked up most of the household debt, what are my options?
In Texas, if a couple has debt, they often divide it down the middle. Some notable outliers exist, though. A court must make a “fair and right” division of marital assets and debts. The Texas Supreme Court has ruled that a “just and fair” division does not require an equal distribution of assets and liabilities. In determining whether or not your marital property and debt should be divided differently, the court will take a number of considerations into consideration.