When a marriage ends in divorce, the division of assets is usually a key aspect of the process. But what about debts? How are they handled in a Tennessee divorce? This article will break down the rules governing debt division in a Tennessee divorce.
Equitable Distribution
In Tennessee, like many other states, marital property is divided according to the principle of equitable distribution. This means that assets and debts are divided fairly, but not necessarily equally, between the two parties.
Marital Vs. Non-Marital Debt
The first step in determining how debts are divided in a Tennessee divorce is to identify which debts are considered marital and which are considered separate or non-marital.
Marital debts are those that were incurred during the marriage for the benefit of both spouses. Non-marital debts are those that were incurred before the marriage or after separation, or were incurred by one spouse for their own benefit.
Responsibility for Property
Under Tennessee law, each spouse is individually responsible for any debts they incurred in their own name during the marriage. This means that if a credit card is in one spouse’s name only, that spouse is solely responsible for paying off the balance.
However, if a debt is in both spouses’ names, they are both responsible for paying it, and the debt will be divided between them as part of the divorce settlement.
Division of Marital Debts
When it comes to dividing marital debts in a Tennessee divorce, the court will generally consider several factors, including:
- The length of the marriage
- The relative income and earning potential of each spouse
- The contributions each spouse made to the acquisition of the debt
- The overall financial situation of each spouse after the divorce
Based on these factors, the court will determine a fair and equitable division of the marital debt.
Dealing with Debt Collectors
It’s important to note that, regardless of how the court divides the debt in a divorce, the creditor is not bound by that decision. In other words, if one spouse is responsible for paying a debt and fails to do so, the creditor can still pursue the other spouse for payment.
If you’re going through a Tennessee divorce and are dealing with debt collectors, it’s important to consult with an experienced attorney to understand your rights and obligations.
Conclusion
Dealing with debt can be a stressful and confusing aspect of divorce. However, by understanding the rules governing debt division in a Tennessee divorce, you can make informed decisions and protect yourself financially. Remember to consult with an attorney and prioritize open communication with your spouse to ensure a fair and equitable settlement.