Navigating Debt Division in Texas Divorces
Guidance from an Experienced Dallas Attorney
During a divorce in Texas, not only are marital assets subject to division, but debts may be as well. Many overlook the fact that debts accumulated throughout the marriage also undergo division during the divorce proceedings, frequently resulting in shared responsibility between spouses
If you’re approaching divorce with substantial debts, having a seasoned attorney is vital. The Law Office of Bryan Fagan, PLLC, boasts a team of Dallas-based lawyers skilled in negotiating debt division agreements. They dedicate themselves to ensuring fair outcomes and safeguarding their clients’ financial interests at every stage.
Face your divorce with confidence. Reach out to our firm to begin discussing your legal options:
- What Happens to Marital Debt During a Texas Divorce?
- How are Credit Cards Handled in a Texas Divorce?
- What am I or My Spouse Entitled to During a Texas Divorce?
The Approach to Debt Division in Texas
Texas’ approach to debt division in divorce differs from other states as the division of debts acquired during a marriage does not automatically occur; instead, it requires careful consideration and negotiation.
In Texas, the division of debt in divorce is a nuanced process that differs from other states. Instead of automatically dividing debts acquired during the marriage, the courts carefully examine each debt’s circumstances. They determine if a debt should remain the responsibility of the spouse who incurred it, especially if it was based on one spouse’s assets alone. Factors such as who benefited from the debt and each spouse’s ability to pay are taken into consideration.
For example, if a debt benefited the family or marital estate, the court may divide it between the spouses. Conversely, if one spouse solely benefited from a debt, the court may assign it to that spouse alone. Therefore, in divorce proceedings, it is essential to have skilled legal representation to navigate the complexities of debt division and ensure a fair and equitable outcome for both parties involved.
However, courts typically view certain debts as shared responsibilities:
- Debts incurred by one spouse acting on behalf of the other
- Expenditures on basic necessities such as food, shelter, medical care, and clothing
While these categories seem straightforward, there can be ambiguities that require judicial interpretation.
If you have concerns about how your marital debt might be evaluated in your divorce, it’s time to consult an attorney who commits to defending your financial future.
We offer complimentary consultations. Use our online form to request yours today.
