Dividing The Debt You Acquired Together
Under Colorado law, divorcing spouses are both responsible for marital debts. This can be a major source of conflict if you have significant loans or consumer debt.
The experienced divorce lawyers of Danielsen Westhoff, PC, help you find workable solutions for dividing debt in the divorce settlement. It is also important to shield yourself from a spouse’s debt problems and creditors after you are divorced.
Division Of Marital Debt
Colorado statute says all wealth – and all debt – acquired during the marriage is subject to equitable distribution. This doesn’t always mean a 50-50 split, but it does mean you are “on the hook” even if the loan or debt was acquired in your spouse’s name. Marital debt might include:
- The mortgage
- Car loans and other financed purchases
- Credit card and charge card debt
- Small business loans
- Personal loans (from banks or family members)
- Unpaid judgments
Exploring Solutions For Joint Debt
It may not be feasible for each spouse to take half the debts. If one spouse has a higher income, they might take on a bigger portion of debts in exchange for lower alimony or keeping other marital assets such as a small business. Or it may be necessary to liquidate property or surrender assets to reduce your debts. Our role is to help you balance out the financial equation in a fair and sensible way. You do not want to be saddled with debts you are unable to pay.
We also assist with removing your name from joint accounts and other measures so you are not liable for a spouse’s debts or financial problems after you have gone your separate ways. Your divorce decree should clearly spell out which debts each of you are responsible for.
Tell Us Your Concerns In A Free Consultation
Our lawyers can explain where you stand and how to deal with debt problems in your Colorado divorce. Danielsen Westhoff, PC, serves clients in Broomfield, the Denver metro area and statewide. Call us at 720-739-7835 or contact us online to schedule a free initial divorce consultation.