What Happens to Debt When You Get Divorced?

Unless a previous agreement is in place before divorce proceedings start, couples getting divorced must reach an agreement on how property and assets get divided between the two of them. What many couples do not consider at first is that debts such as mortgages, loans and credit cards will also need to be divided if the debt is in both of their names. If debts go unpaid, creditors and lenders may go after both parties for payment.

Marital Debt

While a couple is married, a number of debts such as mortgages and car loans may be taken out by one or both of them. Some debts are created by only one of the partners in the marriage, such as a credit card that is only in the husband's name and reporting on his credit history. Other debts fall on both partners, such as loans that were taken out with both the husband and the wife as co-signers and which report on both of their credit histories.

Single-Party Debts

Single-party debts are unaffected by divorce since only one member of the couple is legally responsible for them. If the other member of the couple had been paying the bills for these debts, they no longer have to do so unless it is specified in the divorce agreement. Even if the court does require them to continue making payments on the other partner's debts, the creditor who holds the debt will only pursue the partner who legally owns the debt if it goes unpaid.

Dividing Mutual Debts

Mutual debts generally must be divided between the members of the couple getting divorced, with one partner taking responsibility for some of the debts and the other partner taking responsibility for the others. The creditors who hold the debts are not a part of this agreement, however, and still hold both partners equally responsible for the debt; if they don't receive payments from the partner who agreed to be responsible for the debt, they will pursue payment from both of them. If this happens then the partner who wasn't supposed to pay the debt may be able to pursue legal action against the responsible partner.

Releasing Debts

Some creditors are willing to release one of the partners from a debt after a divorce if the other partner contacts them and requests it. The partner needs to explain that they are in the process of getting a divorce from the other partner and that they will be taking over full responsibility for the debt. If the creditor releases the other partner, only the one who contacted them will be responsible for the debt's repayment. Not all creditors are willing to do this, however.