Ending a marriage involves more than dividing property. Many couples are surprised to learn that debts accumulated during the marriage must also be addressed before a divorce can be finalized.
Under Tennessee property division law, debt is not automatically split equally. Instead, the court allocates responsibility in a manner it considers fair after reviewing the circumstances of each case.
Marital debt and separate debt
Marital debt generally includes obligations incurred by either or both spouses during the marriage through the final divorce hearing. This may include credit card balances, vehicle loans, mortgages and even certain expenses related to the divorce proceedings. The court has the authority to allocate responsibility for marital debt in proportions it considers just and may order some debts to be paid from marital assets before property is distributed.
Separate debt is treated differently. In most cases, debt that existed before the marriage remains the responsibility of the spouse who incurred it. Likewise, if a court has already entered a legal separation order that permanently allocated marital debt, obligations incurred afterward are generally considered separate debt rather than marital debt.
Factors the court considers
Tennessee property division law does not require an equal division of marital debt. Instead, the court considers several factors when deciding which spouse should be responsible for each obligation.
These factors include the purpose of the debt, which spouse incurred it, which spouse benefited from it and which spouse is in the better financial position to repay it. The court also considers the overall division of marital property to reach an equitable result.
In cases involving domestic abuse, Tennessee law provides additional protection. If there has been a qualifying finding or conviction involving domestic abuse, debt related to required batterers’ intervention or rehabilitation programs may be assigned solely to the abusive spouse.
Every Tennessee divorce presents different financial circumstances, and the allocation of marital debt can significantly affect your future financial stability. Understanding the distinction between marital debt and separate debt is an important step in protecting your interests. If you have questions about Tennessee property division law or debt allocation during divorce, seek legal guidance before making important financial decisions.