What happens to my debt if I decide to divorce?
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What happens to my debt if I decide to divorce?

| May 27, 2020 | Firm News |

When a couple in Kentucky is divorcing, one of their concerns may be who gets the family home, automobiles and other pieces of property accumulated during the course of their marriage. However, property division does not just include assets. Decisions will also have to be made regarding who is to retain which debts incurred during the course of the marriage.

First, it is important to note that Kentucky is an “equitable distribution” state, meaning that assets and debts are divided based on fairness, which may not lead to an exact 50-50 split. If a debt is solely in your name, it may be the case that you will retain it following your divorce. However, this isn’t a guarantee.

For example, say your spouse had a credit card in their name that was used to buy things for the family. Because the debt was incurred through the purchase of marital assets, it is possible that both spouses may have to pay back part of the debt, despite whose name is on the card. Also, sometimes if one spouse earns significantly more than the other, they may be responsible for paying back a joint debt.

Ultimately, once a debt is assigned during the divorce process and is included in the final divorce decree, responsibility for that debt becomes legally binding. Thus, those who are going through a divorce may want to seek legal advice, which this post does not provide. Being responsible for a debt after divorce on a single income can be burdensome. It is important that all debts are divided fairly. Those in Kentucky who are going through a divorce will want to have a legal advocate at their side who can explain their rights and options.