Divorce will affect you financially since you will have to split some of your property with your ex-spouse. But it’s not only property that is up for division. Debt, too, forms part of the marital estate and will be divided equitably between both of you.
It means that you may end up with considerably more debt than your ex-spouse, depending on various circumstances. Here is what you need to know.
How much debt will you end up with after equitable distribution?
Usually, equitable distribution of debt does not mean that both parties will end up with similar amounts. Instead, various factors will weigh in when determining the debt you will end up with after the divorce.
For instance, if your ex-spouse has a medical condition or if you were the family’s breadwinner, you might be assigned more debt than them. Other factors include:
- Their age
- The length of the marriage
- Each party’s contribution to the debt
- Their ability to pay the debt as well as their current financial situation
All this is in the interests of fairness which is what equitable distribution is all about.
You may still be responsible for debt assigned to your ex-spouse
It is important to note that creditors can still pursue you if you are a signatory to the debt even after it has been assigned to your ex. This is because a divorce does not affect the borrower-lender relationship you have with the creditor, and the court cannot enforce such debt repayment on your ex.
Protecting your financial interests after divorce
Ensuring that you do not end up with unnecessary debt is very important for your financial security in the future. Therefore, you need to be fully involved in the property division phase of your divorce and protect your interests.