When marriages end, couples have the painful task of sorting through their assets and belongings. However, they also face the challenging situation of having to divide the debts they have accumulated. If you’re considering divorce in Missouri, you should know that the state takes a different approach to debt division that focuses on fairness rather than equal splits.
How Does Missouri Handle Debt Division in Divorce?
Missouri follows a system called “equitable distribution“ when dividing marital debts. This means a judge will divide debts in a way they believe is fair, but not necessarily equal. One spouse might end up responsible for 60 percent of the debt while the other pays 40 percent, depending on various circumstances.
You and your spouse can also reach your own agreement about debt division without leaving the decision to a judge. Many couples find this approach gives them more control over the outcome. However, the court must still approve any agreement you reach.
What Types of Debts Will You Encounter?
Not all debts get divided in divorce. Missouri law recognizes three main categories that determine how debts will be handled:
- Separate Debts – These include any debts either spouse brought into the marriage. Credit cards, student loans, or car payments that existed before your wedding day typically remain the responsibility of whoever originally owed them.
- Marital Debts – Any debts acquired during your marriage fall into this category, regardless of whose name appears on the account. This can include credit card balances, mortgages, car loans, and even business debts incurred while married.
- Commingled Debts – Sometimes, separate debts become mixed with marital ones. For example, if you used joint funds to pay down a credit card your spouse owned before marriage, that debt might become partially marital.
How Do Courts Decide Who Pays What?
When couples can’t agree on debt division, Missouri judges consider several factors to make fair decisions. These include:
- The length of your marriage
- Each spouse’s financial situation
- Who will have primary custody of any children
- Each person’s contribution to acquiring the debt
- Each spouse’s conduct during the marriage
- The value of any separate property each person will keep after the divorce
What About Student Loans?
Student loan debt requires special consideration in Missouri divorces. Loans taken out before marriage typically remain the borrower’s separate responsibility. However, the situation becomes more complex when someone obtained a student loan during the marriage.
If your spouse co-signed your student loan or if you refinanced existing loans during the marriage, the court might treat these loans as shared debt. Moreover, student loan money could also be considered marital debt if it helped pay for living expenses that both spouses benefited from.
Can Prenups and Postnups Help?
Prenuptial and postnuptial agreements can indeed offer protection when it comes to debt division. These documents allow couples to specify how they want debts handled in case of divorce.
A prenup signed before marriage can protect each spouse from the other’s pre-existing debts. A postnup created during marriage can address debts acquired after the wedding. However, it is worth noting that both types of agreements must meet specific legal requirements to be enforceable.
Contact a Missouri Divorce Attorney Today
Debt division can be among the most challenging aspects of divorce proceedings. The decisions made during this process can affect your long-term financial well-being. Having legal guidance can help you understand your rights and obligations.
At Grant, Miller & Smith, LLC, our attorneys bring more than six decades of combined experience to complex family law matters. We will work diligently to protect your interests during debt division proceedings and help you achieve the most favorable outcome possible for your financial future. Contact us today for a confidential consultation.