Most people understand that marital property is divided in a Wisconsin divorce. However, the other side of that coin includes the division of marital debt. The division of debt can be as important, and in some cases more important, than dividing marital property.
All debt that is accumulated over the course of a marriage, for homes and cars, is categorized as community debt. After divorce, both parties are equally responsible to pay back this debt. For example, if you and your former spouse purchased a car for $30,000 and paid off half of it, you will both share equal responsibility in paying back the remaining $15,000.
The situation can be more complicated, however. If your spouse purchased that vehicle without your knowledge, even when using a credit card that was in his or her name only, you will still owe the same share of the money if you live in Wisconsin or other community property states.
Other forms of debt include living expenses. Living expenses typically include the money you pay for utility bills, groceries, gasoline, cell phone and cable bills, and rent or mortgage payments. Items like appliances, including refrigerators, TVs and gym equipment, are considered to be community property.
However, it becomes very difficult to properly assign debt when one spouse had existing debt before the marriage and both parties add to that debt during the marriage. This type of situation often requires a detailed accounting and investigation of expenses.
If you have questions about marital debt or property division in Wisconsin, an experienced family law attorney can help you understand your rights and obligations under the law.
Source: Wallet Pop, “Divorce and Debt: What You Owe and What You Don’t,” Geoff Williams, 2/25/2011
