Dividing Debt in an Ohio Divorce 

One question that comes up repeatedly when two spouses separate is, “How is debt divided in a divorce?” Although it'd be simpler if each party was responsible for their own debts, under Ohio law, debt is considered marital property and is treated as such during a separation. This means that like other assets that need to be divided, debts from credit cards, loans, or other financial obligations will also be addressed in a similar way.  

This can understandably be a difficult situation for many individuals who feel that they should not be responsible for debts incurred solely by their spouse. Some states have community property laws that treat debt as jointly acquired unless otherwise specified.  

However, Ohio follows an equitable distribution model which aims to divide debt fairly, rather than equally. Because of this, seeking the support of a divorce lawyer can help advocate for your interests both in and out of court to ensure that debt responsibilities are allocated fairly. 

To learn more about this process or for help with any of your divorce needs, call Douglas A. Ball Attorney at Law today. From his home office in Batavia, Ohio, Attorney Ball represents clients throughout Batavia County, Clermont County, Hamilton County, Brown County, and Warren County. 

Understanding Marital vs. Separate Debt

Because debt is considered property in the eyes of the law, this is how the judge will look at it should court intervention be necessary. To understand how this will work, it’s important to know how property division operates in Ohio, specifically the difference between marital debt and separate debt. 

Marital debt refers to any debt that is incurred after you are married.  

In most cases, this debt is considered “marital” even if only one spouse took on the debt. For example, credit card debt or loans taken out during the marriage fall into this category regardless of who’s name is on the account. There are scenarios, however, where debts incurred during the marriage, such as medical bills related to one spouse's health, could be considered separate. 

Separate debt refers to debts that were acquired before the marriage began or under certain circumstances after the marriage.  

Examples of separate debt could include personal loans taken out before the marriage, or debts incurred from activities or transactions that were conducted solely by and for one spouse, such as individual business obligations. 

Factors the Court Will Consider

Ohio is also an equitable distribution state, which means that marital debt isn’t always divided exactly 50/50 and is instead divided fairly. When deciding how to allocate debt, a judge will consider several factors: 

• who originally incurred the debt  

• the purpose for which the debt was incurred  

• who has been primarily responsible for paying off the debt  

• the financial circumstances of each spouse  

• how the debt was used to benefit the marriage or family 

Ultimately, the goal is to ensure a fair division of debt responsibilities and to avoid situations where one party is burdened. The court’s decision also aims to distribute debt in a way that acknowledges both the financial stability and the contributions of each spouse to the marital estate.  

A Lawyer Can Help You Work Out a Settlement Agreement

If an agreement cannot be reached with your spouse regarding debt division, the best recourse is to hire a family law attorney to assist. A lawyer can mediate productive conversations that help the couple reach an agreement on their own. This method is typically faster and less expensive than having the courts intervene.  

Frequently Asked Questions

1. What happens to student loans in a divorce? 

Student loans are typically considered separate debt if they were incurred before the marriage. But if the loans were taken out during the marriage, they may be treated as marital debt and divided equitably. The court may consider factors such as who benefited from the education and both spouses' financial situations when determining the division. 

2. Can my spouse be held responsible for debts they didn't know about? 

If the debt was incurred during the marriage, it is likely considered marital debt, even if one spouse was unaware of it. However, if the debt was taken on fraudulently or without the other spouse's consent, the court may assign responsibility differently. 

3. How are unpaid taxes handled in a divorce? 

Unpaid taxes owed from the period of the marriage are generally considered marital debt. The court will divide this debt equitably between the spouses, considering everyone's financial circumstances and ability to pay. If the taxes are from before the marriage or solely one spouse's responsibility (e.g., from a personal business), it may be treated as separate debt. 

4. What if one spouse is intentionally accumulating debt before the divorce? 

If it's found that one spouse is intentionally accumulating debt in anticipation of a divorce to saddle the other spouse with a larger share, the court may view this as financial misconduct. This could affect the division of debt and assets, with the offending spouse potentially being assigned greater responsibility for the debt. 

Learn Your Rights to Debt Division

If there are questions and concerns about how to fairly divide debt in a divorce, sitting down with an experienced divorce lawyer in Ohio is beneficial. Attorney Ball can guide individuals toward a resolution that addresses their financial situation and strives for a fair division of debt, reducing the stress that often accompanies the divorce process. Contact Douglas A. Ball Attorney at Law in Batavia, Ohio, for reliable legal support.