Dividing Debt in a Washington Divorce

Just like assets, debts are divided during divorce. Washington is a community property state, which means that most debts (with some exceptions) incurred during the marriage may belong to both spouses - even if only one spouse’s name is on the account. However, liabilities from before the marriage or after separation, may be considered separate debt.

Common Types of Debt Addressed in Divorce

• Credit Cards: Even if the account is only in one spouse’s name, charges made during the marriage may be divided.
  
  
• Mortgages and Home Loans: The debt usually follows the property. If one spouse keeps the house, they typically take responsibility for the mortgage.
  
  
• Car Loans: Similarly, if one spouse keeps the car, they are usually responsible for the loan.
  
  
• Student Loans: These can be tricky. Oftentimes, they are treated as separate debt, but courts may find it a community obligation especially if both parties substantially benefited from the education during the marriage.
  
  
• Medical Debt: Bills from during the marriage are often considered community debt, regardless of who received the treatment.

How Courts Divide Debt

Courts aim for an equitable division, which doesn’t always mean 50/50. Instead, judges look at factors such as:

• Each spouse’s income and ability to pay
  
  
• Who is keeping the asset tied to the debt
  
  
• The overall balance of assets and debts being divided
  
  
• Any history of reckless or wasteful spending

Risks of Joint Accounts

Even if the divorce decree assigns a debt to your spouse, creditors may still come after you if your name is on the account. To protect yourself you may want to consult with your attorney about:

• Closing joint credit cards as soon as possible.
  
  
• Refinancing loans (like mortgages or car loans) into the responsible spouse’s name.
  
  
• Monitoring your credit report for errors or unpaid balances.

Negotiating Debt in Settlement

Many couples resolve debt issues through negotiation or mediation. Creative solutions might include:

• One spouse taking on more debt in exchange for keeping more assets.
  
  
• Selling an asset (like a home) to pay down joint debt before finalizing the divorce.
  
  
• Agreeing to split certain debts evenly, while assigning others based on use.

Protect Yourself with Legal Guidance

Debt division is one of the most stressful aspects of divorce. A fair resolution requires both a clear picture of your finances and strong legal advocacy. At Magnuson Lowell, P.S., we help clients in Washington understand their financial rights and responsibilities during divorce. We’ll work to protect your future from lingering debt issues. Call us today 425-800-0576 for a free telephone case evaluation.