When a couple in Texas decides to divorce, they face several challenges, including dividing their assets and debts. The process of dividing debts in a Texas divorce is not straightforward and requires a clear understanding of the state’s laws. Texas is a community property state, which means that most of the property and debts acquired by the spouses during their marriage are considered equally owned by both of them.

Community Debt

Debt incurred during a marriage is part of the marital estate and is subject to division in a divorce. For example, credit card debt, car loans, and mortgages are considered marital debt, and both spouses are responsible for paying back these debts after a divorce.

Separate Debt

Separate debt is not part of the marital estate, and the debt only belongs to the borrower-spouse. Separate debt includes debts that were incurred before the marriage, such as student loans or personal loans. A prenuptial agreement can be used to specify which debts are separate and community property.

Debt Division Options

In Texas, how debts are divided is very complicated.  It depends on the specific facts of your case, including what the debt was used for, other property being divided, and the income of each spouse.

A process called discovery will be done to answer some of the questions that the court will have regarding the nature of the debt, the total amount of community and separate property, and the income of the parties.

It is best for the parties to attempt to come to an agreement about how they will handle the debts if possible.

Marital Debt and Creditors

A divorce decree may divide debt liability between the spouses, but creditors may not see it that way. For example, if a court orders one spouse to pay off a credit card, but both spouses are still responsible for that debt, the creditor can come after both spouses if the debt is not paid. The same applies to mortgages, and if the spouse responsible for paying off the mortgage fails to make payments, the mortgage company can still seek payment from the other spouse. A lawyer can help you take legal action to ensure that the debts your ex-spouse assumes won’t follow you after your divorce.

In conclusion, dividing debts in a divorce in Texas can be a complex process, and it’s essential to have a clear understanding of the state’s laws and your rights as a spouse. The divorce attorneys at The Blacknall Firm are available to help you strategize dividing assets and debts when going through a divorce. Contact us today for more information.