If you are getting a divorce, one of the many things you need to consider is how debt will be divided. Marital debt in Ohio can significantly impact a divorce settlement, which is why you need to understand how this works so that you get a fair outcome.
Are you wondering how equitable distribution in Ohio works for divorce cases? If so, check out this article, where we will be discussing marital debt in Ohio, what is considered separate debt, and how you can protect yourself in a divorce.
What Is Marital Debt in Ohio?
When it comes to dividing debt in divorce cases, Ohio does not specifically define marital or separate debt. However, many of the same rules that apply to assets will apply to debts in divorce cases. Because of this, debt is often divided into two categories, which will impact how they are divided between you and your ex-spouse.
Marital debt refers to debt that incurred after the marriage had been finalized. In many cases, this will even apply to debt even if one spouse took it out without the involvement of the other such as in the case of credit card debt.
For example, marital and separate debt can include auto loans, credit card debt, medical bills, or mortgages.
There may be some exceptions depending on each individual divorce case that could result in some types of marital debt being considered as separate debt. For instance, if your ex spouse has extensive medical bills that apply only to their health, this may be considered separate debt.
Some other exceptions that may apply, making marital debt separate include debt as a result of lying, adultery, or fraudulent financial conduct.
What Is Separate Debt?
Now that you know what marital debt in Ohio divorce cases is, what is considered to be separate debt? Just like separate assets, separate debt is debt that was incurred before the marriage began. Or, as we mentioned above, in less common cases, this may apply to certain types of debt incurred after the marriage but only applied to one spouse.
To ensure the best possible outcome for your divorce case, you need to hire a divorce lawyer in Ohio to represent you. An Ohio family law attorney will be up-to-date with Ohio divorce laws and can ensure your rights are upheld so that you aren’t left with the majority of the debt.
How Ohio Courts Divide Debt
In Ohio, equitable distribution is used in divorce cases, which means that things like debt and assets may not be divided 50/50. Equitable distribution is designed to divide things fairly between both spouses, which may not always result in equal portions.
When it comes to debt, Ohio courts may divide it unevenly in an attempt to create a fair settlement if one spouse is more financially stable than the other. Or, it may divide debt differently depending on who has been primarily responsible for paying off shared debt throughout the marriage. There are also other factors that a judge will consider, such as:
- Who incurred the debt
- Each spouse’s tax liabilities
- How the debt was used
- Whether or not the debt is business related
Protecting Yourself From Unfair Debt Allocation
Some divorce cases can be messy, especially if there are significant debts that need to be divided. Because of this, you need to take every precaution possible to protect yourself so that you aren’t left with a significant amount of debt after the divorce has been finalized.
The most important thing you need to do is hire a divorce attorney in Ohio to represent you and protect your rights. You also need to gather as much documentation as you can regarding spending and financial decisions related to both separate and marital debt. Having financial documentation will be especially important when it comes to showing what types of debts are considered separate vs marital.
One concern you may have is that your ex-spouse is intentionally accumulating debt while the divorce is pending. If that is the case or if you suspect your spouse is intentionally hiding debt, you need to share this with the court. In many instances, this type of behavior would be considered financial misconduct, which could result in your ex-spouse receiving a larger portion of the marital debt.
FAQ Section
Am I responsible for my spouse’s credit card debt?
Credit card debt in a divorce will be dependent on whether or not it was accumulated before or after the marriage. In the majority of cases, credit card debt will be divided between the spouses if it was incurred after the marriage, even if the credit card is in one spouse’s name.
Can I protect my credit during a divorce?
To ensure that your credit is not negatively impacted by debts in a divorce case, you need to make sure the divorce decree addresses any joint debt. This will protect you from creditors holding you responsible if your ex-spouse fails to maintain their financial obligations.
How are jointly held debts handled?
Jointly held debts are the same as marital debts and include any type of debt incurred after the marriage. These debts will usually be considered to be the responsibility of both spouses and will be divided fairly in a divorce.
What if the debt is only in my spouse’s name?
Even if the debt is only in your ex-spouse’s name, if it is considered to be marital debt, it will usually be divided between the two of you. However, there are some exceptions to this, such as medical bills or intentional wasteful spending prior to the divorce.
Hire a Divorce Attorney in Ohio
If you are getting a divorce in Ohio, it is essential that you understand how debt is divided so that you get a fair divorce settlement. Richard P. Arthur, Attorney at Law, has extensive experience handling Ohio divorce cases, taking every step necessary to ensure you are not left with an unfair amount of debt. To move forward with your divorce case, contact us today at 937-254-3738 for a free consultation.