Getting divorced is a challenging and emotional process, and dividing up assets and debts can often be the most contentious part of the proceedings. In South Dakota, separate property and shared property is determined by the principles of equitable distribution. But what happens to debt in a South Dakota divorce?
Equitable Distribution
South Dakota is an equitable distribution state, which means that property and debts acquired during the course of the marriage will be divided fairly but not necessarily equally. The court will examine various factors, such as the length of the marriage, each spouse’s income and earning potential, any prenuptial or postnuptial agreements, and the contribution of each spouse to the accumulation of assets and debts.
Marital Debt vs. Separate Debt
Marital debt includes debts that were incurred during the marriage, such as mortgages, car loans, credit card debt, and other loans. Separate debt, on the other hand, is debt that was acquired before the marriage or after the separation. When determining how to divide marital debt, the court will consider each spouse’s ability to pay.
Dividing Debt in a South Dakota Divorce
When dividing debt in a South Dakota divorce, the court will first identify all of the marital debt. Next, the court will apportion the debt between the two spouses based on the factors mentioned above. The court may order one spouse to take on more of the debt if that spouse has a higher income or greater financial resources. In some cases, the court may order the sale of a shared asset, such as a house or car, to pay off marital debt.
Creditors and Your Divorce
One important thing to keep in mind is that creditors are not bound by the terms of your divorce agreement. Creditors will continue to pursue payment from whichever spouse appears to be most capable of making the payments. This means that if your ex-spouse fails to make payments on a joint debt, the creditor can go after you to collect. It is essential to work with an experienced divorce attorney to ensure that your rights are protected during the divorce process.
Conclusion
Dividing debt in a South Dakota divorce can be a complicated process. The court will consider various factors when determining how to divide marital debt, and the outcome may not be entirely fair or equal. It is vital to work with an experienced divorce attorney who can help you navigate the legal system and ensure that your rights are protected throughout the process. Remember, creditors are not bound by your divorce agreement, so it’s essential to take steps to protect your credit after your divorce is finalized.