Dividing property during a divorce can be challenging, but dividing debt is often even more complicated. Credit cards, loans, mortgages — all of it needs to be addressed before your divorce is finalized. So, what happens to debt during a divorce, and who ends up responsible?

The answer depends on state laws, the type of debt, and how it was incurred. This guide explains how debt division works in both community property and equitable distribution states, what happens if your ex doesn’t pay their share, and how to protect your credit during the process.

Understanding Marital vs. Separate Debt

Before any debt can be divided, courts (or spouses) must determine whether the debt is marital or separate.

• Marital debt: Typically includes debts incurred during the marriage, regardless of who signed for it (credit cards, car loans, mortgages, etc.)
• Separate debt: Usually refers to debt one spouse had before the marriage or incurred individually for non-marital purposes

In most states, only marital debt is subject to division during divorce. However, nuances apply. For example, a student loan taken out during the marriage might be treated differently depending on who benefited from the degree.

How Debt Is Divided in Divorce

The way courts divide debt depends on whether the state follows community property or equitable distribution principles.

Community Property States

In community property states (like California, Texas, Arizona, Nevada), both spouses are generally considered equally responsible for:

• Debts incurred during the marriage
• Regardless of whose name is on the account

This means even if one spouse ran up a credit card alone, the other spouse may still be on the hook for half the balance.

Equitable Distribution States

In equitable distribution states (the majority of the U.S.), courts divide debt fairly, though not always 50/50. Factors considered include:

• Each spouse’s income and ability to repay
• Who benefited from the debt
• Whether one spouse acted irresponsibly (e.g., gambling, hidden spending)
• Prenuptial or postnuptial agreements

Judges aim to reach a fair outcome, not necessarily an equal one.

What About Joint Debt?

Joint debts are accounts or loans that both spouses signed for, such as:

• Joint credit cards
• Co-signed loans
• Mortgages

Even if the divorce decree assigns a debt to one spouse, the lender doesn’t care — they can still pursue both parties. That’s why joint debt is especially risky if your ex refuses to pay.

Tip: Consider refinancing or closing joint accounts during divorce to avoid long-term complications.

Student Loans in Divorce

Student loans can be treated as marital or separate debt depending on:

• When the loan was taken
• Who benefited from the education
• Whether the loan supported the household

Some courts consider student loans to be separate if the education only benefited one spouse’s career. Others may divide them if the degree enhanced the couple’s financial future.

Credit Card Debt and Divorce

Credit card debt is one of the most contested financial issues in divorce. Courts often ask:

• Was the card used for family or personal expenses?
• Was the debt hidden or excessive?
• Is the account jointly owned?

Spouses may be assigned specific debts, but creditors can still hold both parties accountable if both names are on the account. Closing or freezing cards early can help prevent additional debt accumulation.

What If Your Ex Doesn’t Pay Their Share?

Unfortunately, a divorce decree does not protect you from creditors. If your ex-spouse refuses to pay a debt assigned to them:

• Creditors may pursue you if your name is still on the account
• Your credit score can suffer
• You may need to return to court to enforce the divorce order

You can ask the court to hold your ex in contempt, but this doesn’t always result in quick relief. That’s why it’s critical to untangle shared debts before the divorce is finalized.

Protecting Your Credit During Divorce

Divorce doesn’t directly affect your credit score, but the way debt is handled certainly does. Here are steps to safeguard your financial health:

• Get a credit report and review all joint and individual debts
• Close or freeze joint accounts to prevent new charges
• Refinance joint loans into individual names if possible
• Set up alerts on any account with your name on it
• Monitor your credit monthly for changes or missed payments

Keeping track of your obligations and taking action early helps minimize long-term damage.

Should You Pay Off Debt Before Divorce?

In some cases, yes — especially if:

• You have joint credit cards or personal loans
• You and your spouse can agree on payment terms
• You want to simplify the divorce process

Paying off or consolidating debt before filing can reduce friction and ensure a cleaner break. However, this depends on your financial situation and willingness to cooperate.

Prenups, Postnups, and Divorce Debt

If you have a prenuptial or postnuptial agreement, it may outline how debt is handled in the event of divorce. These agreements can:

• Protect one spouse from the other’s pre-marriage debt
• Assign responsibility for future obligations
• Clarify which debts are considered marital or separate

Courts usually uphold these contracts as long as they’re legally valid and signed without coercion.

🧠 You May Wanna Check Out:

• How to Modify an Existing Child Custody Agreement
• Understanding Child Custody: Legal vs. Physical Custody
• Alimony Explained: Who Pays and How Much?

Final Thoughts

Understanding what happens to debt during a divorce is crucial to protecting your financial future. Whether you’re facing joint credit card balances or complex student loans, taking action early can help you avoid long-term consequences.

If you’re unsure how debt will be divided in your state or need help negotiating fair terms, consider speaking with a family law attorney. For more insight into divorce and debt laws, check out NOLO’s Divorce and Money Guide.