Three Ways Divorce Impacts Debt

Fewer things in life are more stressful than money problems and relationship problems. And all too often these two issues go hand in hand it can be difficult to separate the two. It is rare for a couple to end a marriage and walk away without debt, which makes it crucial to examine how divorce impacts your debt so you are prepared for what the future holds.

Three ways divorce impacts debt include:


  • Debts that were held jointly will remain the responsibility of both parties in the eyes of the lender, regardless of the terms of the divorce decree. While it is true that the decree will designate which spouse pays which debts, if payment is not forthcoming the lender will look to both parties to repayment. To avoid being made to pay a debt your ex-spouse has been ordered to pay by your divorce, you will need to go back to Court and have your ex held in contempt. Even then, payments may still go unpaid. In that instance, you should consider filing for bankruptcy to get the lender off of your back.
  • Debts that were yours and yours alone will likely remain your responsibility after divorce. Be prepared to pay these debts, or make arrangements with your creditors for a financial work out of larger amounts.
  • Your home will be awarded to one spouse, if it is not sold as part of the divorce. In order to have your name removed as an owner, or to have your ex-spouse taken off title, certain deeds are required to be executed. But keep in mind changing how title vests does not remove the financial obligation. A refinance may be required to clear up the financial responsibility of a martial home.

If you have recently gone through a divorce and need to make a clean break on certain debts, some things you can do are to file for bankruptcy or to seek a mortgage modification. The choice you make depends on the outcome of your divorce, and we can explain the benefits of all of your options. Let us help you make the difficulties of divorce and money easier to bear.

For more information about how bankruptcy and divorce relate to each other, call us today or reach us online at

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