When going through a divorce, everything that once was considered “shared’ now has to be split between you are your ex partner. In Ohio, marital debt is considered part of the marital estate and is subject to equitable distribution, meaning it is divided fairly, not necessarily equally, between spouses. From mortgages and credit cards to personal loans and medical bills, understanding how debt is classified and allocated can protect your financial future and help you move forward after divorce. Whether you are just beginning the process or finalizing a settlement, knowing your rights and responsibilities regarding marital debt is essential.
What Contains Marital Debt?
In Ohio, Marital debt is any debt incurred by either spouse during the marriage, regardless of whose name is on the account. Some of these include mortgages, auto loans, medical bills, and credit card debt. This can also be any debts that benefit the family, such as any home improvements, car repairs, or even costs for a joint family holiday.
Key Points:
- The court treats whether the debt was incurred for marital purposes when dividing it.
- Even if the debt is in one spouse’s name, it may still be considered marital if it benefited the family.
- Debts incurred before the marriage or for purely personal purposes may be considered a separate debt.
Factors Courts Consider in Dividing the Debt
Marital debt in a divorce follows the same general principles used to divide marital property, aiming for a fair distribution, but it is not necessarily a 50/50 split. They will look at:
- Who incurred the debt and for what reason?
- Who benefited from the debt?
- Each spouse’s property and debts.
- Financial misconduct or waste.
- The timing of when the debt occurred.
After all these considerations, the judge will then decide what is fair for each person in the situation.
Methods Of Dividing Debt
Debt may be assigned in different ways depending on certain factors. Some different ways include:
- Assigned to one spouse: This is where the court assigns a specific debt to one person.
- Offsetting: If one spouse receives more assets (like the family home or retirement accounts), they may also assume a proportionate share of marital debt.
- Shared Responsibility: In some circumstances, both spouses remain responsible for joint accounts, but the divorce decree specifies how they will share repayment.
Axelrod Law Can Help You
Navigating marital debt during a divorce can be stressful, especially when large sums or complicated accounts are involved. At Axelrod Law, we help clients:
- Identify and categorize marital vs. separate debts.
- Negotiate equitable divisions of debt.
- Protect their credit and financial future.
- Advocate for fair settlements in court.
At Axelrod Law, we are dedicated to helping our clients achieve fair and equitable outcomes in all aspects of divorce, including debt division. Contact us today to discuss your situation and get the legal support you need to move forward with confidence.