Dividing property in a divorce is tough enough—but what about dividing debt? From credit card balances to car loans and personal lines of credit, many couples face tough questions about who will be responsible for paying off what once the marriage ends.
At Haugen Law Firm, P.C. we help clients throughout Denton County understand their rights and obligations when it comes to debt in a Texas divorce. Here's what you need to know.
How Is Debt Divided in a Texas Divorce?
Texas is a community property state, which means most debts incurred during the marriage are presumed to be shared—regardless of which spouse's name is on the account.
In general:
- Community debt is divided in a way that is “just and right.”
- Separate debt (incurred before marriage or after separation) typically remains with the spouse who took it on.
- The court’s goal isn’t necessarily a 50/50 split—but rather a fair distribution based on the entire financial picture.
Types of Debt Often Divided in Divorce
1. Credit Card Debt
If the balance was run up during the marriage, it’s usually community debt—even if the card is in one spouse’s name only. However, courts may consider who made the charges and for what purpose.
2. Mortgage Debt
If both spouses are on the mortgage, both remain liable—even if one person keeps the house. Often, the spouse awarded the home must refinance to remove the other spouse from the loan.
3. Auto Loans
Typically, the spouse who keeps the vehicle takes on the loan associated with it.
4. Personal Loans
These are divided depending on when the loan was taken out and how the funds were used. If a loan benefited the family, it may be considered a joint debt.
5. Student Loans
If incurred before the marriage, they are usually considered separate property. If taken out during the marriage, courts will consider whether both spouses benefited (e.g., increased household income).
Factors Courts Consider When Dividing Debt
Texas courts may look at:
- Each spouse’s ability to pay
- Who benefited from the debt
- Whether one spouse misused credit (e.g., excessive spending, gambling)
- The division of assets
- Fault in the breakup of the marriage (in some cases)
The division doesn’t always match the name on the account—so don't assume you're off the hook just because the debt isn't in your name.
Beware: Creditors Don’t Care About Your Divorce Decree
Even if the court orders your ex to pay a joint debt, creditors can still come after you if your name is on the account. Divorce decrees do not override contracts with lenders.
If your ex was ordered to pay a joint debt but doesn’t, the creditor can still come after you. In that case, you may need to take your ex back to court to enforce the divorce decree—but that won’t stop creditors from trying to collect from you in the meantime. That’s why it’s crucial to address joint debts carefully during divorce.
Protect Yourself:
Try to close or separate joint accounts before finalizing the divorce.
Refinance loans or transfer balances where possible.
Consider indemnity clauses in your divorce decree (which give you legal recourse if your ex defaults).
How to Protect Yourself From Debt in Divorce
Know your credit: Get a credit report to identify all debts in your name.
Separate finances early: Stop using joint credit cards once divorce is imminent.
Document everything: Keep records of who incurred debts and why.
Work with your attorney: A skilled divorce lawyer can negotiate smart debt division and build in legal safeguards.
Common Mistakes to Avoid
- Ignoring debts just because they’re in your spouse’s name
- Leaving your name on a mortgage or car loan after giving up the asset
- Agreeing to take on debt without an offset in assets
- Assuming the court will divide debt equally
Haugen Law Firm, P.C. Can Help You Divide Debt Wisely
At Haugen Law Firm, P.C. we understand that debt can be just as important as assets in a divorce. Whether you're worried about credit cards, car loans, or co-signed obligations, we’ll help protect your financial future during and after divorce. We’re proud to serve families and individuals across Denton, Collin, Cooke, Dallas, and Tarrant Counties with trusted legal guidance in family law, criminal defense, and estate planning. If you have questions about your legal rights or need personalized support, our dedicated team is here to help. Contact us today!