How is marital debt distributed?

In Maryland, the distribution of marital debt is determined by the court during the divorce proceedings. The court will take into consideration factors such as the parties’ incomes, earning capacity, age, and health as well as the assets and liabilities of both parties. The court will review all marital debts and decide how much each spouse is accountable for. This determination is usually based on the individual financial circumstances of each spouse. If the court decides that both spouses are equally responsible for the debt, then the liability for that debt may be split equally between both parties. This means that each spouse is liable for half of the debt. If the court finds that one of the spouses is more financially capable, then the court may order that spouse to pay more of the debt. The court may also order one spouse to pay a portion of the other’s debt. For example, if one spouse has a large amount of credit card debt, the court might order the other spouse to pay a portion of that debt. This is especially common when one spouse has a higher income or more assets than the other. In some cases, the court may decide that one spouse is solely responsible for all of the marital debt. This is often the case when one spouse has a demonstrated history of irresponsible spending habits or when the debt was incurred by one spouse alone. If this happens, the court may order the responsible spouse to pay off the debt in full or to make payments to the other party over time.

Related FAQs

Are there any defenses to a divorce action?
How is the division of debt determined?
What is a motion to modify or set aside a divorce?
What is a marital deduction?
What is collaborative law?
How do I start a divorce process?
What is a default divorce?
How do I respond to a divorce petition?
What factors will a court consider when granting a divorce?
How can I get a restraining order to protect me from my spouse during a divorce?

How is marital debt distributed?

Related FAQs

Related Blog Posts