{"id":460,"date":"2024-05-16T08:00:09","date_gmt":"2024-05-16T15:00:09","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-family-law\/?p=460"},"modified":"2024-11-13T15:46:04","modified_gmt":"2024-11-13T22:46:04","slug":"dividing-marital-debt-upon-divorce-arizona","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-family-law\/blog\/dividing-marital-debt-upon-divorce-arizona\/","title":{"rendered":"Division of Debt in an Arizona Divorce: What You Need to Know"},"content":{"rendered":"

In a divorce, two separating spouses must determine how to divide their assets between them, and this includes the debt that they owe. Of course, in a contentious situation like a divorce, this is easier said than done.<\/p>\n

Just as community property is owned equally between spouses, so too is marital debt. Upon divorce<\/a>, or dissolution of marriage, in Arizona, any marital debt that exists is divided equitably between the spouses.This means that each spouse takes a fair amount of the couple\u2019s overall debt that was accumulated during the marriage.<\/p>\n

Equitable division of the debt means that any assets and associated debt acquired during the marriage are divided as equally as possible, considering the impacts on both parties. However, separate assets and debts that belonged to either party outside of the marriage are not subject to this division.<\/p>\n

Because Arizona is a community property state, the court will determine how to divide this debt as equally as possible. In the process, a court will identify all debts acquired during the marriage and develop a plan to have each spouse pay half of the debt back. Understanding the process will help you understand what to expect and how to navigate it.<\/p>\n

Marital Debt Definitions<\/h2>\n

In Arizona, generally any type of debt that was acquired during a marriage is considered marital debt. In fact, it doesn\u2019t matter which spouse incurred the debt, as long as the debt was acquired during the marriage, both parties are considered to be responsible for it.<\/p>\n

Marital debt can include both types of debt \u2013 secured and unsecured debt \u2013 and it doesn\u2019t matter if your name is specifically tied to the debt because Arizona is a community property state. For instance, if your credit card payment is in your spouse\u2019s name, it can still be considered marital and shared debt, even if your name is not on the credit card account.<\/p>\n

This is a contentious issue as creditors can sue both parties in a marriage, even if only one party is responsible for incurring the debt. If one spouse incurred significant credit card debt during the marriage, a creditor can hold the other spouse liable as well.<\/p>\n

The circumstances would be different, however, if the credit card was taken out before the marriage, in which case, the debt would remain the responsibility of the sole debtor who took out the credit line. There are exceptions to these general debt guidelines, and your attorney can discuss them at length during the divorce proceedings.<\/p>\n

Types of marital debt could include:<\/p>\n