Dividing Debts in an Oregon Divorce
During your divorce, you'll need to divide any debts from your marriage, including credit card debts, loans, and mortgages.
This page explains what a debt is, the difference between marital and non-marital debts, and the rules for dividing debts during divorce.
What is a debt?
A debt is money you owe to another person or company. Your debts may include credit card balances, home loans, auto loans, student loans, or personal family loans.
Marital vs. non-marital debts
In Oregon, you and your spouse's debts are grouped into two categories:
- Marital debts: Debts you or your spouse got during your marriage. It doesn't matter whose name is associated with the debt.
- Non-marital debts: Debts you or your spouse had before you got married or new debts you or your spouse got after you separated.
Rules for dividing debts
In Oregon, marital debts are divided equitably, which usually means a 50/50 split. Sometimes debts may be divided differently if that's fairer overall.
Non-marital debts don't get divided most of the time. You usually keep the debts you had before you were married or the debts you got after you were separated.
FAQs About Splitting Up Debts
If a married couple can't decide how to split up their debts, a judge will decide for them based on the laws of Oregon. In most cases, both spouses are equally responsible for debts, even if the debt is only in one person's name. It doesn't matter which spouse took out the debt.
A judge will try to divide the debt fairly and practically. Here are some examples of what can happen:
- If a debt is attached to certain property, like a car loan, then the person who gets the property will usually be ordered to pay the debt.
- Usually, each spouse will be responsible for their own student loans.
- Each spouse is usually responsible for the debt they got after their separation, but before the divorce is final.
- A judge can make one person pay more of the debt, but if this happens, the judge also will usually give that person more property to balance things out.
Most judges won't make you pay new debts that your spouse gets after you separate.
Here are some strategies:
- Tell the creditor that a judge told your ex-spouse to pay the debt and give the creditor your ex-spouse's contact information.
- If you decide to pay the bill or the creditor sues you to get you to pay it, you have the right to sue your ex-spouse to pay you back. But you need to act quickly.
If these strategies don't work, talk to a lawyer for more help.
Warning! Even if the court orders your spouse to pay a debt, if your name is still on the debt, the creditor can come after you. If you pay the debt, you can sue your ex-spouse to pay what they owe.