A divorce in Pennsylvania may involve equitable division of the marital estate. Spouses must negotiate a division of marital assets and debts or turn to the court to divide property and liabilities. But can you become responsible for your ex’s debt after a divorce in PA?

Understanding Marital vs. Separate Debt

Pennsylvania divorce law differentiates between marital and separate debt during equitable division. Marital debt includes debts incurred by spouses during the marriage to support the household, such as mortgages, joint credit cards, car loans, or personal loans. Separate debt includes all debts incurred by each spouse before marriage and debts incurred by either spouse solely in their name for personal purposes. The distinction between marital and separate debt can determine what debts each spouse becomes responsible for after divorce.

How Courts Divide Debt in PA Divorces

Under the equitable division rule, Pennsylvania courts divide marital debt fairly during the divorce. However, a “fair” division does not always mean a 50/50 division. Instead, courts consider various factors to determine how to assign marital debt to divorcing spouses. These factors may include:

  • Which spouse incurred the debt
  • The purpose of the debt
  • Whether the debt benefited both spouses or the family
  • Each spouse’s income, assets, and ability to repay the debt

Courts may also consider how it divides marital assets when dividing debt to achieve a fair resolution of a couple’s financial situation.

What Happens to Joint Accounts and Co-Signed Debt?

Married couples may have joint credit card accounts or co-sign each other’s debts. The court may divide these debts during divorce, making one spouse responsible for paying a specific account. However, a spouse’s obligation under a divorce decree differs from their contractual obligations to the lender. As a result, creditors can pursue repayment from both spouses for a joint account or co-signed debt, regardless of how a court may have divided or assigned the debt in divorce, since the divorce decree does not affect the creditor’s contractual rights.

This factor makes it critical for spouses to close joint accounts or refinance co-signed debt to ensure that the spouse responsible for paying the debt under the divorce decree becomes the sole person contractually obligated to the creditor. Failing to ensure that you’ve taken your name off of debts assigned to your ex in the divorce can result in serious harm to your credit score and unexpected financial liability if your ex fails to pay off the debt.

Steps to Protect Yourself Financially

Spouses can take specific steps to protect their financial interests after dividing debts in divorce. Best practices include:

  • Review your credit report before or during your divorce to identify accounts or loans with your name on them.
  • Periodically check your credit report after divorce to ensure your ex meets their repayment obligations under your divorce decree.
  • Separate your finances from your ex as soon as possible by closing joint accounts and running your income and expenses through separate accounts.
  • Gather records to document the origin and purpose of marital debts.
  • Advocate for an indemnity clause in the divorce decree that allows you to pursue compensation from your ex if you later become liable for debt assigned to them.
  • Work with an experienced divorce attorney to negotiate a fair debt allocation and ensure legal protection for yourself in your divorce settlement or decree.

Contact a Divorce Attorney Today

If you’re getting divorced, understanding what happens to your assets and debts can help you pursue a favorable resolution to the economic issues in your case. Contact Beroes Law Center today for a free, confidential consultation with a divorce attorney to learn more about how Pennsylvania law divides spouses’ debts during divorce.