How is the division of debt determined?

In Indiana, the division of debt is determined using overarching statutes and regulations that are guided by the court’s discretion. Generally, it follows the principles of equitable distribution, whereby the court evaluates the property and debts acquired during the marriage and determines the property and debts that each spouse will receive, or be responsible for, after the divorce. In order to do this, the court will look at the assets and liabilities each spouse has separately, the length of the marriage, the contributions each spouse has made to the marriage, and the financial needs of each spouse. The court will assess the value of any assets and debts accrued, then divide them between the spouses in an equitable manner. The court may also consider the debt incurred by an individual prior to marriage when dividing assets and debts. The marital debt, however, is presumed to be shared equally by both spouses regardless of who incurred it. Therefore, the court will assess the total marital debt, and the court may assign a higher or lower portion of the debt to one spouse or the other depending on the specific circumstances of the case. The court will also consider non-economic contributions and their value when determining the division of debt. It is important to note that the court is ultimately responsible for making a decision, so it is important to strive for an agreement that both parties agree on.

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How is the division of debt determined?

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