How Is Debt Divided During Divorce?

Often, couples bring their premarital debts into the marriage and acquire additional debts during the marriage. Even when debts acquired while married are held separately in the name of one spouse or jointly in the name of both spouses, couples may pay off their debts together during the marriage. When married couples file for divorce, the debts acquired during the marriage are called marital debts. Oregon law divides, assigns and distributes marital debt by equitable distributions. The distribution does not automatically divide the debts equally but rather fairly between spouses by analyzing what is just and proper under the circumstances to determine whether a spouse assumes partial or total responsibility for the marital debt.

In the Oregon divorce process, each spouse must submit documents to the court that show the spouse's debts, including current statements of loans, credit line or charge card balances. The court categorizes the debts as either separate debt or marital debt. Separate debt is debt acquired before the marriage. It is the sole responsibility of the spouse, whose name is on the debt. Marital debt is acquired during the marriage by one or both spouses. Married couples share the responsibility for marital debt. During the divorce, the court determines whether a spouse assumes partial or total responsibility for marital debt.