Loans and divorces. Who gets the debts?


A divorce is not a pleasant process at all. When this time comes, there are many things to consider. For example, splitting everything they managed to get over the years, agreeing on child custody and details of a possible alimony , etc. But what happens to the debts? Who gets them?

Yes, during a divorce you must establish who gets what, and that also includes debts . We know that loans and divorce are words that do not go well together, and that it even sounds a little scary. In this article you will learn how this process works and how to deal with it. Continue reading!

What Happens to Debts When You Get Divorced?

Throughout our lives, we have all applied for some kind of loan. Be it for a house, a car, studies or business, we have seen a growth opportunity but we could not finance it, and we have opted for a loan . Years passed, the debts , both in your name and your spouse's name, have not yet been paid, and now you are faced with the division of what you once shared.  

During this process, the division terms may vary depending on the state and applicable laws. But most likely, if a loan is under the name of the two owners, it will be shared even after the divorce .  

During a divorce equality is always sought, but it can also happen that if a person obtains more of the properties acquired during the marriage, he will also be loaded with most of the debt .

It should be noted that if there is a loan that you have acquired during the marriage, but that is only under your name, it only belongs to you and will not be shared with your spouse after the divorce.

Tips for handling debt in case of divorce

In the event of an unavoidable divorce , it is important to have a plan and make the best decisions to prevent debt from causing you financial problems in the future. Here are some tips to prevent financial disaster.

Come to an agreement with the other party

If there is a possibility that the other party is interested in keeping a loan , it is worth a try. This can happen if the loan was a mortgage and a house or property is at stake. Keeping the property requires taking responsibility for the debt , for which you would be solvent for this payment.

Pay off the existing loan

If it is impossible to reach an agreement, the best option is for each party to take responsibility for its share of the debt immediately. This way they will take a load off their back quickly, and they will not have to worry in the future about defaulted payments or irresponsibility by the other party. If there are several debts, one of the options is to request a single loan to reunify debts and thus pay less interest.


This may be the option you least want, but it is still a feasible way to avoid carrying a shared debt . It consists of selling the properties and products that were acquired with the requested loan , and using the money to pay the debt of both parties. It is a harmful method, since it could affect the children of a marriage, but it is a way to ensure that the loan is eliminated if either party is not in a position to pay its half of the debt immediately.

Share the debt

This is perhaps the worst option, since you will have to trust that the other party is responsible for paying the loan responsibly. In the event of death or disability, the debt will become completely yours, which is not a very pretty scenario. And if any property was acquired, it will become one of the parties or will have to be shared equitably. For this reason, the best thing you can do is keep your debts under control.

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