When a couple gets a divorce, they are turning an emotional arrangement into a business transaction. All marital assets and debt must be divided and split between the two parties. While splitting up the assets is difficult enough, dividing the debt causes problems that extend beyond the divorce. Generally in Michigan, individual debt remains the responsibility of the person whose name is on the account.
Types of Accounts
An individual account is an account that belongs only to one person. In the case of a debt account, only one person has agreed to repay this debt. A joint account usually has two people named on the account, but can have more. With debt, anyone who is signed promising to pay the debt is jointly and severally liable for the debt. This means that anyone one party is responsible for the entire amount owed. An Authorized user account means that a person has been allowed to use the account, but they have not promised to pay any of the balances.
Divorce and Debt
A divorce does not change anyone's responsibility in regard to paying the debt. If a husband and wife both signed saying that they would pay, they will still both be held responsible for the debt. If you have not signed an agreement stating that you would be responsible for a spouse's debt, then you do not have to pay it in most cases in the state of Michigan.
Community Property States
Community property states operate a bit differently. These states view any property that is acquired during marriage to be marital property, no matter who earned the income or paid for it. The same applies to debt. Any debt incurred during a marriage is the responsibility of both parties no matter who signed for it. As of 2010, Michigan is not a community property state.
Family Expenses
If the proceeds of a loan or credit card were used to pay for family expenses, there may be some joint liability. Many states have laws on the books to allow this liability, and courts rule based on individual circumstances. If a spouse took out a loan to purchase a new boat and it was in the husband's name only, it is not likely that the court would consider it a family expense, and the wife would probably not be responsible. If he purchased a new minivan, it could be a different story, especially if the wife drove it more often. Food and household expenses placed on a credit card could be termed as family expenses and may have joint liability as well.
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