How Is Debt Divided in a Texas Divorce?

 Posted on October 15, 2024 in Divorce

When a couple gets divorced, both spouses are entitled to share certain assets and property. In Texas, those are referred to as community property. While in some states community property is divided fairly, in Texas it is generally divided equally. This means that most possessions acquired during the marriage will be split in half between the spouses. However, Texas law says courts should divide community property according to what is "just and right."

Community debt works the same way. Couples who get divorced must often submit financial disclosures listing each of their assets, expenditures, and debts. Those debts are divided equally between both spouses by default, but there are exceptions.

In this article, we will explore how debt is divided in a divorce, how courts make decisions about community debt, and how to contact a Texas divorce attorney for more details and legal services.

How Is Community Debt Divided in Texas?

Generally, any debt that is incurred during the marriage is considered community debt and is shared equally by both parties. Mortgages, credit card debt, and car loans are examples of community debt that both spouses are responsible for. Debt that was incurred by one of the spouses before the marriage is not shared with the other spouse.

However, there are exceptions to this rule. Since judges must divide community property and debt according to what is "just and right," a court may saddle one of the spouses with more debt than the other, even though it was incurred during the marriage. For example, if one of the spouses owes money due to a gambling addiction or because he or she spent money on extramarital affairs, a court is not likely to make the other spouse share that burden.

What Factors Do Courts Take Into Account When Dividing Debt?

Although community debt might belong to both spouses equally by default, judges look at several factors when deciding if it is "just and right." For example:

• Whichever spouse has the most custody or conservatorship of the child may have more expenses which could justify having a smaller share of the debt.
• If there is a significant income disparity, where one spouse has a much larger income than the other, a court might give a larger share of debt to that spouse.
• If one spouse incurred debt and it did not benefit the family, the other spouse may not have to share that debt. For example, if one party spent money on box seats for sports games that he or she attended alone, a court might allocate more debt to that spouse.

Contact a Parker County, TX Divorce Attorney

The division of community property and debt can be a complex process and should involve an experienced Palo Pinto, TX community debt division lawyer. At The Law Offices of Kary L. Key, we will walk you through every step of divorce with compassion, skill, and competence. Let us protect your interests during the debt division process and help you achieve the best outcome possible. Get personalized legal services now by calling 817-599-6969 today.