How is the division of debt determined?

In Washington, the division of debt is typically determined by equitable distribution. This means that debts incurred during the marriage are treated as belonging to both parties (even if only one party is actually responsible for the loan). The court then examines each debt in order to decide if it is an individual or marital debt. If the debt is considered a marital debt, it must then be divided equitably between the parties. This means that the judge will look at the financial circumstances of both parties, and will make an effort to divide the debt in a fair and just way. In some cases, the judge may decide that one party should pay the entire amount of marital debt. This might be the case if one party had control of the finances during the marriage, or if one party contributed more to the accumulation of debt. The court may also order that responsibility for certain debts be assigned to one party or the other, based on a variety of factors. The court can also assign debt to different parties based on the terms of the loan contract. For instance, if one spouse is the sole borrower for a loan, then that person may be held solely responsible for that debt. In addition, the court may decide that a debt should be assigned to one party if that person had used the money for his or her own benefit, such as spending it on personal items. Finally, the court may order the parties to negotiate a settlement that divides the debt equitably. This type of settlement is often seen in cases where the parties cannot agree on a fair division of the debt. In such circumstances, the court may order the parties to work together to reach a settlement agreement.

Related FAQs

What is a mediation divorce?
What is a default divorce?
How does a court decide who gets custody of the children in a divorce?
What is a qualified domestic relations order (QDRO)?
What is a prenuptial agreement?
How do I modify a divorce decree?
What is a divorce lawyer?
How do I properly serve divorce papers?
What is a family law attorney?
What is a fault divorce?

How is the division of debt determined?

Related FAQs

Related Blog Posts