Navigating divorce in Georgia involves more than dividing property — it also means addressing marital debt and safeguarding your personal assets. At Hobson & Hobson, P.C., we leverage over 30 years of combined experience and advanced technology to guide clients through these complex issues with clarity, empathy, and strategic advocacy.
Understanding Marital Debt in Georgia
Marital debt refers to any liabilities incurred by either spouse during the marriage, regardless of whose name appears on the account. This includes mortgages, credit card balances, car loans, medical bills, and personal loans. Debts acquired before the marriage are generally considered separate debt and remain the responsibility of the spouse who incurred them.
Key Facts About Marital Debt
- The average American household carries about $169,242 in debt, highlighting the importance of careful debt division during divorce (Federal Reserve).
- In Georgia, both joint debts (in both names) and individual debts (incurred during marriage but in one name) are subject to division.
- Student loans taken out during the marriage may be divided, while those incurred before marriage are typically separate.
How Marital Debt Impacts Divorce Settlements
Georgia is an equitable distribution state. This means the court divides marital debts (and assets) fairly, not necessarily equally. The court considers:
- Each spouse’s financial situation and earning capacity
- The length of the marriage
- Contributions (financial and non-financial) to the marriage
- Who incurred the debt and for what purpose
- Any wasteful dissipation of marital assets
- Whether the debt is secured by specific assets
Important: Creditors are not bound by divorce decrees. If both parties’ names are on a debt, both may remain liable even if the court assigns responsibility to one spouse. This is a common pitfall that can lead to post-divorce credit issues.
Georgia-Specific Regulations
- Only debts incurred during the marriage and before separation are considered marital debt.
- The court’s goal is a fair allocation based on the circumstances, not a strict 50/50 split.
- Settlement agreements can specify debt responsibility, but do not override creditor rights.
For more on Georgia’s approach, see the Georgia Legal Aid guide on divorce.
Strategies to Protect Personal Assets
Protecting your personal assets during divorce requires proactive planning and strategic negotiation. Here’s how we help clients at Hobson & Hobson, P.C.:
1. Document All Debts and Assets
Maintain clear records of when debts were incurred and whose name is on each account. This documentation is crucial for distinguishing between marital and separate debt.
2. Negotiate a Detailed Settlement Agreement
A well-crafted settlement can specify who will pay each debt and include indemnification clauses. However, remember that creditors may still pursue either party if both names are on the account.
3. Close or Refinance Joint Accounts
Where possible, remove your name from joint debts to avoid future liability. Refinancing or paying off joint accounts before finalizing the divorce can prevent credit problems down the road.
4. Monitor Your Credit Report
Regularly check your credit report to ensure debts assigned to your ex-spouse are being paid. This helps you catch issues early and protect your credit score.
5. Work With an Experienced Family Law Attorney
Legal guidance is essential for complex asset and debt division. Our attorneys combine litigation training with innovative technology to deliver efficient, effective outcomes.
6. Consider Prenuptial or Postnuptial Agreements
These agreements can clarify debt responsibility in advance, providing peace of mind and reducing conflict if divorce occurs.
For more tips, visit the Consumer Financial Protection Bureau’s guide to divorce and debt.
Common Pitfalls to Avoid
- Assuming a divorce decree protects you from creditors: If your name remains on the debt, you are still liable if your ex-spouse defaults.
- Failing to distinguish between marital and separate debt: This can result in unfair debt allocation.
- Overlooking debts incurred by your spouse during the marriage: Even if the debt is in their name, it may still be considered marital.
Professional Advice and Unique Insights
“Even if a divorce decree mandates one spouse is totally responsible for the repayment of a joint debt, the other spouse may still be held accountable for the repayment of the debt by the joint creditor in the event the responsible spouse defaults.” (Nolo)
At Hobson & Hobson, P.C., we educate clients about the realities of post-divorce debt liability. Our approach combines detailed financial analysis, strategic negotiation, and client education to ensure fair and enforceable outcomes.
Why Choose Hobson & Hobson, P.C.?
- Over 30 years of combined experience in divorce and custody cases
- Special litigation training for efficient, effective outcomes
- Focus on protecting parental rights and finances
- Balanced approach: Empathy when possible, aggressive advocacy when necessary
- Five convenient office locations in Atlanta, Canton, Marietta, Alpharetta, Milton, and Roswell
We stay current with evolving family law through ongoing training and leverage technology to best serve our clients. Our attorneys, led by M. Sarah Hobson and Christopher F. Hobson, are dedicated to helping you make the best legal decisions during challenging times.
Learn more about our services at Hobson & Hobson, P.C..
FAQ: Marital Debt and Protecting Personal Assets
Q: What is considered marital debt in Georgia? A: Marital debt includes any liabilities incurred by either spouse during the marriage, regardless of whose name is on the account. Debts from before the marriage are typically separate.
Q: How does the court divide marital debt in Georgia? A: Georgia courts divide marital debt equitably, considering factors like each spouse’s financial situation, the purpose of the debt, and contributions to the marriage.
Q: Can I be held responsible for my ex-spouse’s debt after divorce? A: Yes. If your name remains on a joint debt, creditors can pursue you if your ex-spouse defaults, even if the divorce decree assigns the debt to your ex.
Q: How can I protect my personal assets during divorce? A: Document all debts and assets, negotiate a detailed settlement, close or refinance joint accounts, monitor your credit, and work with an experienced attorney.
Q: Are prenuptial or postnuptial agreements helpful? A: Absolutely. These agreements can clarify debt responsibility and protect your assets in the event of divorce.
Additional Resources
- Georgia Department of Human Services
- National Endowment for Financial Education: Divorce and Debt
- Federal Trade Commission: Dealing with Debt
For personalized guidance on marital debt and how to protect personal assets, contact us at Hobson & Hobson, P.C.. Our client-centric, innovative approach ensures your financial future is protected during and after divorce.
