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Things to keep in mind about divorce and debt

One issue that many people overlook during their divorces in Louisiana until after they are over is debt. While they are so busy focusing on getting their share of the marital property, they forget to consider who gets the marital debt. Joint debts that couples accumulate during their relationships do not disappear. Some debts that were acquired by one spouse can become the responsibility of both parties. 

Many people use prenuptial agreements to detail the ownership of assets and financial obligations to make it easier to divide their debts when they separate. However, in their rush to exchange vows, some individuals forget to make provisions that can save them a ton of grief and stress. 

Dividing assets and debts "equally" is not always a numerical equivolency.  Certain personal factors should be considered when forming the structure of your settlement or court ordered division of property.

Common types of marital debts 

Marital debts, such as mortgages, auto loans, personal and business loans, credit cards and some student loans are possessions and subject to division as marital assets. All assets that are acquired during marriage in a community property state, including debt must be divided, states The Clearpoint Blog. 

Ideally, couples should pay down as much of their marital debts as possible before filing for divorce. Once their marriages end, they may argue and disagree about ownership and repayment. Divorce does not absolve one of their financial obligations to creditors. According to The Balance, creditors still expect payment and can demand repayment from the original owners. 

Couples who want to avoid liability for debts they incurred during their marriages should consider having their partners sign post-nuptial agreements. They should also review the requirements for creating a post-nuptial agreement so that they can avoid common issues with enforcing it.

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