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What Happens to Debt in a Texas Divorce?

Divorce is a life-changing event that goes beyond the emotional aspect; it also involves complex financial decisions. In Texas, a community property state, marital debts are treated as joint responsibilities, making debt division an essential part of the divorce process. Understanding how community property laws affect debt division is crucial for safeguarding your financial future.

At Skillern Firm, our experienced divorce attorneys are well-versed in Texas’ community property laws and can guide you through the challenges of debt division during divorce. To ensure a fair and equitable division of debts, contact us today at 936-213-8479.

Understanding Community Property and Debt

In Texas, community property includes all assets and debts acquired by either spouse during the marriage, with few exceptions. This encompasses income, real estate, personal property, credit card debts, auto loans, and personal loans. Community debt refers to any debt incurred by either or both spouses during the marriage.

How Community Property Laws Impact Debt Division

Texas law differs from equitable distribution states, where debts are divided based on fairness. In Texas, marital debts are typically split equally between both spouses, regardless of whose name is on the debt or who incurred it. This means that even if one spouse took out a loan or incurred credit card debt individually, both spouses share responsibility.

Distinction Between Community Debt and Separate Debt

While most debts incurred during the marriage are considered community debts, some exceptions classify certain obligations as separate debts. These include debts that one spouse had before the marriage, debts related to separate property owned by one spouse, or liabilities arising after legal separation but before the divorce decree.

Types of Debt and How They’re Handled in Divorce

Common debts addressed in divorce include credit card debt, auto loans, mortgage debt, and student loans. All these debts, incurred during the marriage, are typically considered community debts, making both spouses equally responsible for them.

Joint Debts and Personal Debts
Joint debts, like joint credit card debt and auto loans, are split equally between spouses during divorce. Personal debts, on the other hand, can be more complex to address, requiring the assistance of an experienced divorce attorney.

The Special Case of Medical Bills
Medical bills incurred during the marriage are usually considered community debts. However, if they relate to children or significantly influence spousal support or asset division, they can become more complicated.

Role of a Divorce Attorney and Certified Divorce Financial Analyst

Navigating the complexities of divorce, especially when debts are involved, can be overwhelming. Hiring a skilled divorce attorney is essential to understand your rights and responsibilities under Texas’ community property laws. At Skillern Firm, we assist in debt management and divorce proceedings, ensuring your financial interests are protected.

Working with a certified divorce financial analyst is invaluable for detailed debt analysis, future financial projections, and long-term planning during and after divorce. This professional can help you make informed decisions about settlement options and understand the tax implications of debt division.

Understanding the Intersection of Bankruptcy and Divorce

Bankruptcy and divorce can significantly impact each other, leading to temporary halts in divorce proceedings due to an automatic stay. Most joint and individual debts can be discharged in bankruptcy, relieving both spouses from their obligation to pay. However, spousal support is not dischargeable.

Timing (before or after divorce) and the type of bankruptcy filed (Chapter 7 or Chapter 13) influence how debts and assets are handled. At Skillern Firm, we are equipped to guide you through the complexities of bankruptcy and divorce.

Dealing with Late Fees and Other Financial Obligations

After divorce, managing financial obligations can be overwhelming, especially dealing with late fees. To avoid complications, keep track of all financial responsibilities and ensure timely payments to protect your credit score.

Credit Card Companies, Joint Accounts, and the Divorced Individual

Remember, your divorce decree does not bind credit card companies, and they can still hold you liable for joint credit card debts. To protect your financial future, close all joint accounts after divorce and establish new ones in your name.

Addressing Spousal Support and Debt Payments

Spousal support payments and debt responsibilities should be taken into consideration when planning post-divorce finances. The divorce decree will define who is responsible for specific debts, but creditors may still attempt to collect from either party if the debt was initially joint.

Protecting Your Credit Score During and After Divorce

Joint debts can negatively impact credit scores during divorce. To protect your credit, continue paying joint debts on time and separate joint accounts. Regular credit monitoring is essential to ensure all joint accounts are closed and new accounts in your name are accurately reported.


Divorce is a challenging process, especially when dealing with debts and finances. Understanding Texas’ community property laws and seeking guidance from experienced divorce attorneys and financial analysts can lead to a fair and equitable debt division, securing your financial future post-divorce. At Skillern Firm, we are here to support you through every step of the divorce process and help you navigate debt division with confidence.

What Happens to Debt in Divorce? FAQ

What happens if my former spouse refuses to pay their share of joint debt after divorce?

Both parties are typically held responsible for a joint debt in community property states like Texas. However, if your former spouse fails to honor their financial obligations post-divorce, it may negatively impact your credit score.

It’s important to seek legal advice if this occurs. An experienced attorney can guide you on the necessary legal steps, such as seeking court enforcement of the divorce decree to protect your financial interests.

What happens to a car loan in both our names if we get divorced?

If you have a joint car loan, it’s considered a joint debt and is typically split between both parties during a divorce. One common solution is that the spouse who keeps the car will also take over the loan payments. However, if the loan isn’t refinanced under that spouse’s name alone, the lender could still hold both parties responsible if payments aren’t made.

Does divorce automatically cancel my responsibility for joint credit cards?

No, a divorce doesn’t automatically absolve you from responsibility for joint credit card debts. Your agreement with the credit card company remains valid until the debt is fully paid or the account is closed. If your ex-spouse is responsible for the debt per your divorce agreement but fails to pay, creditors can still hold you responsible, which may affect your credit score.

How can I protect myself from being responsible for my ex-spouse’s future debts after divorce?

To protect yourself from liability for your ex-spouse’s future debts after divorce, ensure that you close all joint accounts and open new ones in your own name. Furthermore, make sure the divorce decree clearly stipulates who is responsible for current debts. It’s also crucial to monitor your credit reports regularly to promptly detect discrepancies or unauthorized activities.

Can a credit card company come after me for a debt that was assigned to my ex-spouse in our divorce?

Yes, credit card companies can pursue both parties for joint debts, irrespective of what your divorce decree states. Credit card companies are not parties to your divorce agreement; therefore, they can hold both individuals accountable for the debt. It’s crucial to close all joint accounts prior to the divorce finalization.

What happens if my ex-spouse files for bankruptcy after our divorce?

In a community property state like Texas, if your former spouse files for bankruptcy after divorce, it can have implications for jointly held debts. Even if the divorce decree assigned responsibility for the debt to your ex-spouse, bankruptcy may discharge their obligation, potentially leaving you responsible for the full debt. In such a situation, it’s advisable to consult a bankruptcy attorney to understand the best course of action.

Are separate debts considered in the division process during divorce in Texas?

Yes, even though Texas is a community property state, separate debts, which are debts incurred before marriage or after separation, are still considered during the divorce proceedings. Generally, separate debts are assigned to the spouse who initially incurred them. It’s essential to clearly identify and categorize these debts to ensure an equitable division.

How Skillern Firm Can Help

Navigating the complexities of debt division during a divorce can be a stressful and intricate process. That’s where the Skillern Firm comes in. Our experienced attorneys can provide the necessary assistance, guidance, and representation to ensure your interests are adequately protected.

As part of our commitment to our clients, Skillern Firm focuses on ensuring a fair division of debt in every divorce case we handle. We understand that the division of debt can significantly impact your financial stability post-divorce. Therefore, our team works diligently to safeguard your rights and strive for an equitable and just debt-division agreement. We also work to protect our clients from being unfairly burdened with their former spouse’s debts.

If you’re going through a divorce and are concerned about how debt will be divided, you don’t have to face it alone. Reach out to Skillern Firm today. Our knowledgeable and experienced team can guide you through the process and help protect your financial interests.

Contact us now at 936-213-8479 for a consultation.

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