How Is Marital Debt Divided in a Georgia Divorce?

When navigating divorce proceedings, understanding how marital debt is divided often becomes as critical as splitting assets. In Georgia, debt division follows the principle of equitable distribution, meaning courts aim for a fair – though not necessarily equal – allocation based on multiple factors. For Atlanta residents facing this challenge, Hobson & Hobson, P.C. provides strategic guidance to protect clients from unfair financial burdens.

Georgia’s Approach to Marital Debt Division

Under Georgia Code § 19-3-7, debts acquired during marriage are generally considered marital property, regardless of which spouse incurred them. This includes:

• Mortgages
• Credit card balances
• Car loans
• Medical bills
• Personal loans

Separate debts (those from before marriage or after separation) typically remain with the incurring spouse, but exceptions apply if debts benefited the marriage. For example, a pre-marital student loan might become shared debt if it enabled higher earnings that supported the family.

3 Key Factors in Splitting Debt During Divorce

Courts evaluate these elements when dividing obligations:

1. Financial Contributions. Did one spouse disproportionately incur debt without the other’s consent? A $50,000 gambling loan taken secretly might be assigned solely to the borrower.
2. Debt Purpose. Debts for family needs (e.g., home repairs) often split equitably, while those for personal indulgences (e.g., luxury purchases) may stay with the spending spouse.
3. Earning Capacity. A stay-at-home parent might receive less debt allocation than the primary earner, depending on childcare responsibilities and future income potential.

Protecting Yourself in Marital Debt Divorce Cases

1. Document Everything. Gather statements, loan agreements, and evidence showing how debts were used. For instance, credit card statements revealing solo purchases can help limit liability.
2. Close Joint Accounts. Freeze or close shared credit lines to prevent new charges. Update authorized users on accounts you plan to keep.
3. Negotiate Strategically. Many couples use mediation to trade assets for debt responsibilities. You might keep the car but assume its loan, while your spouse retains retirement funds.
4. Consult a Family Law Attorney. At Hobson & Hobson, P.C., our attorneys analyze debt structures to advocate for favorable terms, whether through settlement or litigation.

How Courts Handle Contested Debt Disputes

When spouses disagree, judges consider:

• Fairness: Would one party face undue hardship?
• Tax Implications: Some debt transfers trigger liabilities.
• Parenting Responsibilities: Childcare costs may reduce debt obligations.

Frequently Asked Questions

Q: Am I responsible for my spouse’s credit card debt?

A: If the card was used for household expenses, yes. Personal purchases made without your knowledge might remain with the spouse.

Q: Can debt be split 50/50 in Georgia?

A: Only if both parties agree. Courts prioritize fairness over equal splits.

Q: What if my ex stops paying court-assigned debt?

A: Creditors can still pursue both spouses. File a contempt motion to enforce the divorce decree.

Q: How are student loans divided?

A: Loans taken during marriage typically split equitably unless used solely for one spouse’s career advancement.

For deeper insights, explore Nolo’s guide to marital debt or the American Bar Association’s financial tips.

Final Thought: Debt division requires meticulous planning. Hobson & Hobson, P.C. combines 30+ years of family law experience with tailored strategies to shield clients from unfair obligations. Whether through mediation or aggressive litigation, we ensure your financial future remains secure.