Going through a divorce can mean dealing with several contested issues, including dividing the responsibility for settling marital debt. Virginia family courts generally aim for equitable division of debts accumulated during your marriage. However, when the debt distribution is not fair to the situation of the parties involved, your future financial standing may be affected.
Understanding how debt divisions work can help you better distinguish which ones you are responsible for. Utilizing this knowledge enables you to build a strong case to protect your finances during the divorce process.
What counts as marital debt
In Virginia, marital debt refers to any joint debt in both parties’ names. It also extends to dues that either spouse incurred during the marriage, including:
- Car loans and payments
- Credit card debt
- Mortgages
- Student loans
The court also looks at the purpose of debts, which are meant to better your marriage and family unit. If it was for personal use, it should be separate even if it was taken on while you were still married. Recognizing the difference is important for fair debt division during the divorce process.
When ending your marriage, it is ideal for you and your spouse to work out a debt division plan together. You can both avoid taking on more than your share of debt while keeping each other accountable to settle dues with this agreement.
How Virginia courts divide marital debt
When couples cannot find common ground on their finances, a judge may need to decide for them. The court will assess your marital debt based on several factors for division, including:
- Ages of both spouses
- Duration of the marriage
- Financial situations of each spouse
- Liquid and nonliquid characteristics of all marital assets
- All monetary and nonmonetary contributions made to the well-being of the family unit
- Tax consequences for each spouse
Presenting your case with clear and complete financial information can help ensure a better outcome in the divorce trial. Seeking help from a legal professional can provide you with better insight on how to strengthen your argument as well.
Protecting your financial standing
You deserve a way to properly settle your marital debts even after your marriage has ended. By understanding local laws on debt distribution, you are better equipped to advocate for yourself without harming your financial future.
