How Debts Are Divided in Alabama Divorce

Just as you are entitled to an equitable division of marital property in divorce, you are also obligated to assume an equitable share of marital debts. Since many divorcing couples have more debts than assets, you need to be aware of how debts will be divided. Even if you did not create the debt, you may be responsible for paying back half of it.

If you are facing divorce in Alabama, I offer a low-cost, no obligation consultation to discuss the division of marital debts. If you seek a lawyer’s advice early enough, you may be able to avoid certain types of credit card debt in the months leading up to your divorce.

How is Credit Card Debt is Divided after Divorce?

You and your spouse probably have a number of credit cards. Even if you did not apply for the credit card, you will be obligated for the current balance and future charges if you used the credit card one time, or if the card was used to make purchases for the common benefit of your household.

As your lawyer, I can help minimize your exposure to credit card debt. By canceling a credit card, you can avoid responsibility for future charges. However, you must cancel the credit card in writing. You must also mail the cancellation notice by certified mail so you can obtain a signed receipt showing that the credit card company received your letter. You would still be responsible for paying an equitable share of past charges on the canceled card.

How is Mortgage Debt Divided after a Divorce?

If you receive the marital residence as a part of a property settlement in Alabama (also commonly known as the “Agreement of the Parties”), then you will also assume responsibility for monthly mortgage payments, unless your spouse is ordered or agrees to make some or all of that payment.

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