How is marital debt distributed?

In Rhode Island, marital debt is distributed in the same manner as marital assets. This means that debt accrued during the marriage is deemed to be the responsibility of both spouses, regardless of whose name is on the account or loan. In determining how the debt should be allocated, the court will look at several factors, including each spouse’s assets, income and overall financial responsibility during the marriage. If one spouse has significantly lower assets and/or income, the court may order the other spouse to bear a higher portion of the debt. When it comes to debt from before the marriage, the court looks at who is legally responsible for the pre-marital debt and will generally assign it to the spouse who actually incurred the debt. For example, if a spouse had a student loan before the marriage, the court will likely assign the debt to that spouse, regardless of any agreement that both spouses would be responsible for it. The court may also consider fault when assessing liability for marital debt. If one spouse is found to have acted recklessly with regard to the marriage finances, the court may require the guilty spouse to bear a higher portion of the responsibility for the marital debt. Finally, if neither spouse can afford to pay the marital debts, the court may order a joint repayment plan between the spouses, or require the payment of a certain portion of the debts. In addition, the court may also order one spouse to pay a certain portion of the joint debt as alimony or support to the other spouse.

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