During a divorce in Virginia, the division of assets and debts becomes an important step. But what qualifies as marital debt? Understanding which debts belong to the marriage can determine how the court divides them. Here’s a breakdown of what counts.
What is marital debt?
Marital debt refers to any financial obligation one or both spouses took on during the marriage. This can include credit card balances, mortgages, loans, or even medical bills. The main factor is whether the debt was taken on for the benefit of the household or family. If it was, the court will likely treat it as marital debt, even if only one spouse’s name appears on the account.
How is marital debt divided in Virginia?
Virginia follows the principle of equitable distribution to divide both assets and debts in a divorce. This means the court divides debts fairly, but not necessarily equally. Factors such as the length of the marriage, each spouse’s financial situation, and contributions to the marriage influence how the court divides the debt.
What debts are not considered marital?
Debts incurred before the marriage or after the couple separates generally won’t be considered marital debt. For example, if one spouse had personal credit card debt before the marriage, the other spouse won’t typically be responsible in the divorce. Similarly, debts incurred after the separation usually fall on the spouse who incurred them.
Dealing with joint and individual debts
Joint accounts or loans represent shared debts, meaning both spouses are responsible for repaying them. Even if the divorce settlement assigns one spouse to pay a particular debt, creditors can pursue either party for payment. On the other hand, individual debts are typically the responsibility of the spouse who took them on.
Understanding which debts are included in the division helps ensure the process is as clear and fair as possible.
