Divorce doesn’t just divide property between former spouses; it also divides debt. From credit cards to mortgages to personal loans, who ends up responsible for what can be one of the most stressful (and confusing) parts of ending a marriage.
In Pennsylvania, debt division follows the same legal principle as property: equitable distribution. That doesn’t always mean “equal,” but it does mean “fair.”
What Counts as Marital Debt?
Marital debt includes most financial obligations acquired during the marriage, regardless of whose name is on the bill. This could include:
- Joint credit card debt
- Car loans
- Mortgages
- Medical bills
- Personal loans
- Business debt (if acquired for joint benefit)
Even if only one spouse used the credit card, if the debt occurred while you were married, it’s likely considered joint.
What Isn’t Considered Marital Debt?
Debts incurred before the marriage or after separation are typically considered separate and stay with the person who incurred them. Likewise, if one spouse ran up secret gambling debt or took out a hidden personal loan for an affair, a court may assign that debt solely to them, especially if it didn’t benefit the household.
How Do Courts Divide Debt in PA?
Pennsylvania courts consider several factors when dividing debt, including:
- Each spouse’s income and earning potential
- Who benefited from the debt
- Who is keeping the asset tied to the debt (like a car or house)
- Whether one spouse was financially irresponsible
For example, if one spouse keeps the family car and it has an outstanding loan, they may also be assigned that loan.
Be Careful with Joint Accounts
Here’s a critical reminder: creditors don’t care about your divorce decree. If your name is still on a joint account and your ex stops paying, the creditor can come after you. That’s why it’s essential to:
- Refinance loans (like mortgages or car loans) into one name
- Close or freeze joint credit cards
- Monitor your credit report post-divorce
What About Bankruptcy During Divorce?
Sometimes, the debt load is so high that bankruptcy becomes part of the conversation. If either spouse files for bankruptcy during or after the divorce, it can change who is ultimately on the hook. This is where legal strategy matters most, and where you need coordinated legal advice.
Get Legal Help Before You Sign Anything
At Jensen Bagnato, P.C., we help clients navigate the financial side of divorce with clarity and protection. We’ll help you understand your rights, negotiate fair debt terms, and avoid post-divorce surprises.
Facing divorce with complicated debt? Contact our experienced team, serving clients across Philadelphia and South Jersey, today for a free consultation.