Divorce And Debt: What's Mine Is Mine And What's Yours Is Yours!

Almost everyone in Georgia knows that when a couple divorces, they have to split their property and money. Marital roperty must be split "equitably" either by assigning ownership or splitting the proceeds of a sale. The definition of "equitable," of course, is often the subject of considerable debate, as is the definition of what is "marital property" as opposed to what is owned separately by the spouses.

As if the division of assets and property weren't enough for a divorcing couple to deal with, as the economy continues to tank and individuals are losing their jobs or having to take pay cuts, divorcing couples often find another thing must be split during their GA divorce: debt. In fact, the division of debt has become one of the most contentious issues in recent Georgia divorce cases.

Generally, only "marital debt" is divided in a GA divorce; debt incurred before the marriage does not get re-assigned. So, that car loan you have for the car you bought when you were still single is still yours. But the joint credit card, the home equity loan, and the mortgage have to be dealt with jointly between you and your spouse. The piper must be paid, no matter your marriage status. Additionally, one or both spouses will likely have additional debt after the divorce in the form of alimony payments and/or child support.

Couples generally have three options for dealing with debts in divorce. First, the couple could pay the debts off before the divorce is finalized. While it takes more money up front, it does allow for both parties to have a "clean break" when the divorce is finalized. The second option is for both parties to continue to jointly pay the debt as they did before they decided to get divorced. This option might be financially easier for some couples, but your finances will still be intertwined with your ex for years or even decades after the divorce is finalized. The third option is for the debt to be split, where one person is solely responsible for a certain percentage and the other person is responsible for the rest. Of course the main hazard with this option is that if both spouses signed for the debt but only one spouse is responsible for paying it, if something should happen and that spouse is late in making their payments (or unable to make them at all) the other spouse's credit will suffer. Even more, if a credit is not paid and both spouse's have signed for a loan, that creditor may have the right to sue, garnish your wages, garnish your property, or more!

If either of these three options do not work, a combination of them may fit better. Of course the option that is right for you will depend on your unique financial situation as well as the finances of your spouse. In any scenario, a divorce is difficult enough, but divorcing couples who are in debt will no doubt face significantly more obstacles and hardships, and an experienced Georgia divorce lawyer will be able to advise you on what your best course is for your unique situation