In general, if your name is the on the debt, you are a responsible party. If you co-signed a loan with your spouse, you are legally liable to pay it back. Debt accumulated during a marriage is considered marital debt and the responsibility of both spouses. Debt incurred in your name before you married or after you separated is considered separate debt.

Many states follow “community property” rules, which say that both spouses are responsible for marital debt. However, Pennsylvania is an “equitable distribution” state, which means both property and debt are divided in an “equitable” (note – this does not mean “equal” or 50/50) and fair manner.

Importantly, while the divorce decree may specify that one partner is responsible for a certain debt, such as a credit card, if the debt is in both partners’ names, that credit card company will hold both partners accountable. That is also the case with other debt, such as mortgages, auto loans, and medical expenses. Additionally, the type of debt and the reason it was accrued could play a role. For example, an elective medical procedure may be the responsibility of the individual it benefitted, while medical expenses for the children could be shared jointly.

Separating assets and debts in divorce can be challenging. Hiring a top family law attorney can help you evaluate your options and strengthen your position. Contact us at 215-340-2207 or email info@bucksfamilylawyers.com.