It’s not unusual for a couple to take on debt together during the marriage. After all, married individuals likely share common financial goals and plans. Some of these debts may include a joint credit card to meet family expenses, a mortgage on the family home or an auto loan, collectively referred to as marital debt.
When the couple splits, these debts will be divided between them. The portion of the marital debt each spouse will end up with after the divorce depends on various factors, such as whether the couple can reach a mutual agreement, the presence of a legally binding agreement and the prevailing state laws.
Equitable division in New Hampshire explained
New Hampshire’s equitable distribution laws will determine the marital debt division process in a contested. Some of the factors that may come into play are:
- The duration of the marriage
- The age, health, social or economic status of each spouse
- The ability of the spouse to repay the debts
- Each spouse’s contribution to the marriage
- The needs and liabilities of each spouse, among others
- Whether the debts were run up purely for one party’s benefit
Any other factor the court thinks will lead to a fair and just division of the marital debt could influence the outcome. As a result, you may not end up with similar amounts of debt to repay.
You may still be liable for joint debt
Orders from the divorce court only go as far as apportioning the debt between a divorcing couple. It does not affect any contractual obligations entered into before the divorce. Therefore, you may still be required to repay a co-signed debt, even if it is assigned to your ex. This can complicate things, especially when your ex defaults.
Learning more about how the entire property and debt division works and what you can do to absolve yourself from the debts under your ex will help you protect your financial interests post-divorce.
