Dividing Debts in Divorce is an important aspect of every family law case in Wagoner County. Next to child custody and alimony debt division is one of the most common conflicts during a divorce proceeding.  While most people think about houses, financial accounts, and other belongings, it is important to remember the dividing debts in divorce is also a major part.  This is because for many years after the divorce is finished and all the dust has settled you are responsible to pay the debt. The courts in Oklahoma generally use the “equitable division” standard when deciding cases involving dividing debts in a Wagoner Family and divorce case.

Debts Are Either Marital Property or  Pre-Marital

Well, this depends.  Debts can fall into either individual (aka: pre-marital) property or they can be marital debts.  Because Oklahoma divides marital property under the equitable division standard, knowing what counts as marital debts and what does not is crucial. If the debt was on that was incurred prior to the marriage then you are not responsible for it. On the other hand, if the debt was incurred while you were married it is probably divided in the divorce settlement as a marital debt.

Types of Debt

Generally, debt falls into one of two categories: secured debt or unsecured debt.  Secured debt has property that a seller or loan officer can seize if you fail to make payments.  For example, if you fail to make your vehicle payments, your vehicle is subject to repossession.  That is a classic example of secured debt.

Unsecured debt is different.  It usually involves credit card debt, or monies spent on intangible items.  These would be like going to a movie or out to eat and paying on credit.  As a result, there is not property to return to the creditor when non-payment occurs.

Read Some Articles About Lowering Your Debt by Filing Bankruptcy HERE.

Dividing Debts in Divorce

Now that you understand the difference between the types of debt, we can discuss how they divide in the event of a divorce.  Secured debt follows the property.  So, if one spouse ends up with the car which is not paid off yet, that spouse receiving the car will have sole ownership of the debt associated with the vehicle.  The spouse that does not receive the car will no longer be liable for the debt on the car.

However, unsecured debt does not have property to follow.  As a result, dividing debts in divorce that are unsecured are subject to equitable division.  This means both spouses will be responsible for paying off the debt even after the divorce is final.

Wagoner Family Law Attorneys

Our divorce attorneys practice not only in divorce, but also child custody law.  If you have questions about divorce and family law let us know. Divorce is complex and sometimes one party uses it to bludgeon the other. By understanding what debt is part of the marriage and what debt isn’t you can avoid making the mistake of giving away the farm. For a Free consultation call us directly and get the answers. 918.283.7394