It might feel unfair to share a debt incurred by your spouse. But Colorado courts don’t allocate financial liability strictly based on who signed the receipt or swiped the card. Here is how marital debt allocation actually works during a divorce.
Marital vs. nonmarital debts
Colorado courts classify divorce-related debt into two categories: marital and nonmarital. The nonmarital debts are the responsibility of the spouse who accumulated them. Meanwhile, the marital debts are usually split between the spouses, following equitable distribution law. But how do you determine which category a debt falls into under Colorado family law?
- Marital debt: Debt incurred during the course of marriage – such as mortgages, car loans or joint credit cards
- Nonmarital debt: Debt taken on before marriage or acquired afterward for personal benefit
Understanding the difference between these categories can help you prevent unfair financial burdens when dividing property.
Are you completely free from risks?
In certain circumstances, the creditors might hold you solely liable for the marital debt. For instance, if your spouse declares bankruptcy, the creditors may come after you. Furthermore, in many Colorado divorce cases, there is a risk of the spouse disputing the classification of marital and nonmarital debts, attempting to get their personal debts under marital debts.
How a legal guide may help
Grasping Colorado’s marital debt laws can be helpful in protecting your financial future during a divorce. However, there is a lot at stake and the legal procedure can be incredibly complex. If you want to protect your interests and see that the court allocates the debts fairly, consider consulting with an attorney who can provide guidance tailored to your specific situation.