Cindy Allen & Associates PLLC

Phone: 405-310-8673

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Yours, mine and ours: Dividing debt during divorce

If you are like many Oklahoma residents, you may have acquired debt over the years, whether it is credit card debt, medical bills, student loans or a home mortgage. Now you may be wondering who will be responsible for repaying these debts after your divorce.

Unless you have a prenuptial agreement, it is likely that your marital debt will be split “fairly and equitably” during the divorce, just like your marital property. But what makes debt or property “marital” in nature?

Typically, all debt and property that is acquired during the marriage is considered “marital” (unless you have a prenup). Debt that you acquired before the marriage is generally considered "separate," or yours alone.

Hence, if you acquired a lot of student loan debt prior to your marriage, it is likely that the debt will stay your own responsibility. Whereas, if you racked up credit card debt on shopping sprees during your marriage, that debt is likely going to be considered marital.

However, the reason it is so important to have an experienced family law attorney on your side is because it isn’t always easy to determine which debts are marital and which are separate. The same is true for your property.

In some cases, an asset or debt may be both marital and separate in nature. Again, it’s important to work with an experienced lawyer to make sure that your rights and interests are protected during the property division portion of your divorce.

If you and your spouse have debt, you want to make sure that you are only responsible for your fair share. Cindy Allen & Associates PLLC understands the nuances that apply to dividing marital property and debt, as well as the tax consequences that may apply.

Call us today at 405-310-8673 for a case evaluation.

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