Divorce and Debt in Virginia: Who Is Responsible for What?
Going through a divorce in Virginia is never easy, especially when financial issues like debt come into play. From credit card balances to vehicle or personal loans and mortgages, separating couples often face tough questions about who is legally responsible for what.
In Virginia, debt is treated similarly to property during divorce. Our Virginia divorce attorney helps clients protect their financial interests and explains factors that influence who is responsible for what.
How Virginia Courts Divide Debt in a Virginia Divorce
Virginia uses an equitable distribution model when dividing marital property and assets in divorce. It also applies to most types of debt. That means the court divides marital debt in a way that’s fair, though not necessarily equal.
Under the Virginia Code, judges consider a variety of factors to decide how to divide debt between spouses fairly:
- When the debt was incurred and whether it was before or during the marriage;
- Who benefited from the debt;
- Each spouse’s ability to repay it;
- Each spouse’s contributions to the marriage, both financial and non-financial;
- The overall circumstances surrounding the debt.
Debts that were incurred during the marriage, such as credit cards used for shared expenses, loans for a family vehicle, or medical bills for a child, are usually considered marital. These are subject to equitable division. Debts incurred before marriage or that solely benefited one spouse, such as a student loan used before the wedding, are typically classified as separate and remain that spouse’s responsibility.
Protecting Yourself Financially During A Divorce In Virginia
When dividing debts in a Virginia divorce, it’s essential to trace how and why the debts were incurred. Having someone on your side acting as a strong legal advocate helps, especially if your spouse was financially reckless or dishonest.
To protect yourself when dividing marital debts in Virginia Family Court proceeding, take these steps:
- Identify all marital and separate debts.
- Gather recent debt statements, paperwork for mortgages or other loans, and other relevant documents.
- Gather wage statements and past tax returns documenting each party’s income.
- Establish a separate bank account from your spouse.
- Assess each day and consider paying it off or refinancing it.
- Monitor your credit report for changes, both now and after a divorce.
Even if the court assigns a debt to your spouse, creditors aren’t bound by your divorce decree. If your name is on a joint account or loan, they can still come after you for payment. That’s why it’s important to include strong protections in your divorce agreement.
To Speak With Our Experienced Virginia Divorce Attorney About Debt Division, Contact Our Office Today
Dividing debt during a divorce can feel overwhelming, but you don’t have to figure it out on your own. At Schwartz Kalina, PLLC, we help clients throughout the area successfully navigate the legal and financial challenges. To speak with our experienced Virginia divorce attorney, contact us today and request a confidential consultation.
Sources:
law.lis.virginia.gov/vacode/title20/chapter6/section20-107.3/
loudoun.gov/959/Divorce-Information
