Financial matters are often pressing concerns when people file for divorce. Many individuals looking to end their marriage worry about getting their fair share of assets from the marital estate. Retirement accounts and the family home are often focal points in the property division process.
What they don’t stop to think about is the impact of their marital debts on their financial circumstances. It is very likely that you and your spouse share a significant amount of debt in addition to most of your major assets. What will happen to those debts during your upcoming Texas divorce?
The courts will split debts that are community property
When trying to decide what to do with your debts, the courts will look at when people incurred them, the names on the accounts and the purpose of the spending related to the debt. Debts from during the marriage and intended to support the family are likely community property.
Credit card balances from grocery purchases or paying your child’s orthodontist bill will probably be community property that both of you have to help repay. The same might be true of student loans accrued during your marriage if the spouse going to school intended to support the family with their education.
On the other hand, debts incurred right after someone filed for divorce or while conducting an extramarital affair may constitute dissipation and not be marital debt. The same is true of debts accrued prior to marriage in most cases.
Knowing how the Texas courts will handle your property and your debts can help you plan for your upcoming divorce.