Dividing Debt in a Divorce
Spouses in marriage and partners in registered domestic partnerships may acquire and accumulate debts during their relationship. Some people bring debt in the marriage or partnership. The name on the debt may determine the person financially responsible for paying it. However, debt in only one spouse or partner’s name may still be the responsibility of both parties.
During the relationship, couples may agree to share responsibility for paying debts. Funds acquired in the marriage or partners jointly contribute to financial obligation. Sometimes, marital or partnership monies help pay off the debt that the spouses or partners brought into the union.
When spouses or partners seek a dissolution of marriage or partnership, respectively, their debts are subject to division and distribution by the judge. The court must determine when and how the parties acquired the debt.
Each spouse may have separate debt they acquired before the marriage or a registered domestic partnership. During the marriage or partnership, the couple may accrual marital debt. The couple lists their debts, and the court determines if they are separate or marital debts.
Oregon law divides the marital debt by equitable distribution, even if the debt is only in the name of one of the spouses or partners. Equitable distribution is not automatically an even split. It assigns the financial liabilities between the parties based on what is fair.
However, the parties may decide on how to divide the marital debt. They may choose to split the amount or arrange for one party to assume sole responsibility for a debt. A spouse or partner may even agree to pay for the other party’s separate debt.
If they cannot agree on the distribution of the marital debts, the spouse or partners must submit the Assets and Liabilities form to the court. The judge reviews the documents and other evidence. Then, the court allocates partial or total responsibility of a marital debt to the parties.
Other Divorce Frequently Asked Questions
- Can I File For Divorce In Oregon If I Don’t Know Where My Spouse Is?
- Can My Spouse Keep My Children From Me While Our Oregon Divorce Is Pending?
- Do I Have To Move Out Of My Home During A Divorce?
- Do Stepparents Have Rights In An Oregon Divorce?
- Do You Have To Go To Court To Get A Divorce?
- Does A Non-Custodial Parent Automatically Have Parenting Time After An Oregon Divorce?
- Does It Matter Who Files For Divorce First In Oregon?
- How Do Courts Determine Child Custody in an Oregon Divorce?
- How Do I File For Divorce In Portland?
- How Do I Make Sure My Assets Are Kept Safe From My Ex-Spouse?
- How Do I Separate From My Spouse?
- How Does Divorce Impact Financial Aid For My Child’s College Education?
- How Does The Process Of Serving Divorce Papers Work?
- How Is Debt Divided During Divorce?
- How Is Property Divided During Divorce?
- How Long Do You Have To Be Separated To Get A Divorce?
- How Long Does It Take To Get A Divorce?
- How Much Does A Divorce Cost?
- How To Start A Divorce Conversation?
- How To Start A Divorce Process?
- Is It True That I Will Need To Complete A Parenting Class Before The Court Finalizes My Divorce?
- Is There A Waiting Period Before A Divorce Is Granted In Oregon?
- Should I Move Out During The Divorce?
- What Am I Not Allowed to Do During a Divorce?
- What Are The Grounds For Granting A Divorce In Oregon? Do I Have To Prove That My Spouse Did Something Wrong?
- What Do I Ask A Divorce Attorney in Oregon?
- What Documents Do I Need To Bring To A Divorce Lawyer?
- What Does a Collaborative Divorce Mean for Oregon Parents?
- What Happens After I File For Divorce In Portland?
- What Happens in a Divorce if My Spouse/Partner Has All the Debt in Their Name?
- What Happens in a Divorce if My Spouse/Partner Has All the Property in Their Name?
- What Happens To My Art Collection If I Get Divorced In Oregon?
- What Happens To My Boat If I Get Divorced In Oregon?
- What Happens to My Retirement Account if I Get a Divorce in Oregon?
- What Happens To My Vacation Home If I Get Divorced In Oregon?
- What Is A No-Fault Divorce?
- What Is Considered Grounds For Divorce In Portland?
- What Is Separation?
- What Is The Process For A Divorce?
- Why Should I Contact A Divorce Lawyer Before Filing?
- Why Would The Court Reject My Divorce Paperwork?
- Will My Spouse Get My Inheritance After We Divorce?
- Will Obtaining A Restraining Order Against My Spouse Help Me In My Divorce?